Microsoft is pulling the plug on its “iPod killer,” the Zune, “because of tepid demand, letting the company shift its focus to other devices, says “Bloomberg Businessweek” (, citing “a person familiar with the decision.”

Microsoft will concentrate on putting Zune software onto mobile phones, such as those running its Windows operating system, the article says. Zune software lets customers buy songs and movies, as well as pay a monthly fee to stream unlimited music.

The Zune, introduced in 2006, never managed to offer any serious competition to the iPod. Apple’s media device led the market with 77% of unit sales last year, while the Zune failed to crack the top five, according to the NPD Group ( By adding the Zune features to the Windows Phone software, Microsoft aims to gain ground in another challenging area — mobile phones — where it’s lost market share to Google and Apple, says “Bloomberg Businessweek.”