Microsoft’s foray into the portable media player market proved to be a rather sad one, as their Zune device, while decent in terms of hardware as well as software, simply did not work in the eyes of the mass consumer. After all, how else is there to explain the extremely slow uptake and nearly non-existent adoption in the world that is so filled with iPods? It seems that Microsoft wants out with a last hurrah, hence slashing the price of the 16GB Zune HD down to $169.

It makes perfect sense if Microsoft wants to inch the Zune HD towards End Of Life (EOL) territory – after all, their current mobile baby, Windows Phone 7, does come with full Zune functionality and more, and the mobile operating system has clearly rendered lower capacity Zune HD devices more or less obsolete. Would a price drop actually stimulate the appetite for the Zune HD? We doubt so, but stranger things have happened in the past. 

While the 16GB Zune HD received a $30 discount, that would mean the 32GB model is now available at the same price point where the 16GB Zune HD once stood at – $199.99. That is nearly $100 cheaper than the $299 32GB iPod touch. No price change for the 64GB model though at $349.99, so what do you think of the whole offer?

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