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Ballmer Hints At Giving Up On Zune At CES

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Recent by comments by Microsoft executives have led to speculation that Microsoft may abandon the Zune.

Microsoft CEO Ballmer declared at CES that consumers increasingly were moving away from one task devices like the Zune towards smart phones while at the same time stating flatly that no Zune phone was in the works.

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Zune has struggled to gain traction against the iPod/iTunes juggarnaut, but just as the full death of DRM has opened up the potential for real competition, will Microsoft really walk away from Zune?  More likely it will concentrate less on music hardware and more on software which has always been the company's strong point.

As Pauk Davis hinted on Microsoft's official

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