Buy Zune

The retailer, GameStop, which sells mostly video games, video game consoles, and other video game related merchandise, has said that it will stop selling the Zune because it does not fit well with its product mix. Though I don't understand who thought that an MP3 player would fit with video games. However, with Zune games coming out, it may begin to fit better soon. The target market of video games and the Zune are similar so I can see how they might have thought that GameStop would have been a good place to sell it.

Apparently GameStop had already made the decision to stop selling the Zune, internally about a month ago. But they announced it at their first-quarter 2008 earnings conference. Personally, if I think about buying a Zune I would think of Best Buy or even Target and Wal-Mart, but not GameStop. So, I don't find it surprising that they have decided to stop selling it, shelf space is a precious commodity, and for a retailer like GameStop in which margins are decreasing, even the little Zune may be taking up too much space.

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