By Maximilian Clarke

Microsoft (NASDAQ: MSFT) have announced that they will no longer be producing their Zune branded digital media players, focusing instead on Windows Phone 7 for their video and music playing strategy.

The news comes one month after the digital media brand’s former boss, Dave McLauchlan tendered his resignation in order to build a tech startup called Buddy.

Zune users will still be able to use all the brand’s services and existing warranties remain valid. Microsoft are simply halting production.

Tech bloggers had long predicted today’s announcement, with some anticipating the brand would be scrapped altogether.

Microsoft have been investing heavily in their smartphones- by forming a strategic partnership Nokia, as well as releasing the highly publicised Mango update to their operating system. Currently, however, the computing giant only accounts for 5% of the smartphone market, compared to Android’s 52% dominance.

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