Last night, Microsoft issued a statement putting the record straight. The Zune HD is still on sale (in the US at least, the player has never reached these shores in any incarnation), but no further models will be produced.
"We recently announced that, going forward, Windows Phone will be the focus of our mobile music and video strategy, and that we will no longer be producing Zune players," the statement reads. "So what does this mean for our current Zune users? Absolutely nothing. Your device will continue to work with Zune services just as it does today. And we will continue to honor the warranties of all devices for both current owners and those who buy our very last devices. Customer service has been, and will remain a top priority for us."
Ah well. There's always Windows Phone to keep us busy we suppose.
Via This Is My Next