This couldn't be worse news for Microsoft. Not only did they lose revenue at 5,000 Gamestop locations, but it would affect any future plans to sell XNA games to XBOX fans; who may want a portable device that they can also play their games on. That would have meant a big cross promotion and would have generated great sales. But, if worse comes to worse, there still are plenty big retailers who are still selling The Zune.

Personally I feel that Microsoft was making a big mistake by trying to compete against the iPod. Apple's mp3 products are very unique and no company has come close to them. So I could understand how the demand for the Zune could be low.