If at first you fail, try and try and try....

Microsoft refuses to give up on its unpopular Zune

Three years ago, Microsoft unveiled the Zune, a product that it hoped would rival the Apple iPod. It was a massive flop. The company has sold just 3 million of the devices (for a two per cent share of the MP3 market). This spring alone, Apple sold over 10 million iPods (it has a 73 per cent market share). But Microsoft refuses to give up on the Zune and a mobile music and gaming market that it sees as strategically important. Next month, it plans to introduce the Zune HD (which features high-definition video that can be streamed to television screens). Microsoft hopes to integrate the Zune with its popular XBox video game system and lure in its users. Still, it will be a long uphill battle against the iPod, but one that Microsoft is still willing to fight.

Business Week

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