GameStop Takes Microsoft Zune Off the Shelves

Submitted by lalit on May 22, 2008 - 4:53pm.

Video game retailer GameStop has decided to pull the plug on Microsoft’s Zune MP3 player because of insufficient sales. The decision would not affect GameStop as most of its revenue comes from video games sales and Zune’s contribution to its sales figures had been almost negligible for past two years. This will definitely put a big hurdle in Microsoft’s attempt to grow Zune sales, as GameStop has more than 4,400 stores and losing a big distribution channel will hurt Microsoft. A GameStop’s spokesperson said, “We have decided to exit the Zune category because it just did not have the appeal we had anticipated.” Like I said in my previous post about Zune sales, there is a decrease of 50% in year over year sales for Zune, since it was launched in 2006. Most retailers won’t back a product that sees 50% drop in sales, in second year after launch and that to when three new models are released.



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