According to bloomberg report, Microsoft will discontinue Zune and will not refresh the device after selling the current available units in stock.

“Microsoft Corp. (MSFT) will cease introducing new versions of the Zune music and video player because of tepid demand, letting the company shift its focus to other devices, according to a person familiar with the decision.”

In 2006 Microsoft introduced Zune to compete with Apple’s iPod but unfortunately the device did not even kill the top five MP3 players of the market.