The market for $200 MP3 players mostly dried up (due to HDD/flash memory getting cheaper, pushing what were $200 players down to $50, and the rise of smartphones). Unless you're Apple, it's practically impossible to sell them at that price.

Only the physical Zune player is dead. The desktop software, Windows Phone 7 software, and Xbox Live Marketplace integration live on.

Tepid interest, apparently. I think the market might be saturated or people might be using their phones instead of portable media players. Everyone I've talked to has had a relatively positive experience with their zune. I have a first gen 30GB model that I got used that's still alive and kicking. I don't purchase music through their store but the Zune was the right price at the right time and I've never really been too concerned about what the cool kids with their iPods thought of my slightly clunky Zune. It plays music, it takes a beating and its cheap.

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