The hardware side of the business will be slowly wound down this year according to reports but music and video content, via Zune Marketplace, will remain accessible through connected Xbox consoles and Windows Phone 7 mobile handsets.

Bloomberg quotes a Microsoft spokesperson as saying, "We have nothing to announce about another Zune device [...] Our long-term strategy focuses on the strength of the entire Zune ecosystem across Microsoft platforms, and we remain committed to providing a great music and video ...