Gamestop to discontinue sale of Microsoft Zune: Reports

Posted on Sunday, May 25, 2008 4:17 AM
(RTTNews) - Video game retailer Gamestop Corp. (GME) plans to stop selling Microsoft Corp.'s (MSFT) Zune media player due to poor demand, sources said. The Wall Street Journal reported that GameStop, which is a videogame and console retailer with 4,500 outlets, has already pulled its Zune stock from its stores. The media players will be available via GameStop's Web site until supplies are exhausted. The Zune 'didn't have the appeal' that GameStop expected, a spokesman reportedly said. In the initial six months, Microsoft sold 1 million Zune units, but since then sales have weakened despite a complete line revamp. Gamestop's decision is another blow to Microsoft's chances against Apple Inc.'s (AAPL) dominant iPod media player franchise. GME closed Friday's trade at $49.37, up $0.52, or 1.06%, on a volume of 5.4 million shares. MSFT dropped $0.42 and ended Friday's trading at $28.05, on a volume of 48.91 million shares. For comments and feedback: contact editorial@rttnews.com
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