In case more evidence was needed that Microsoft (NASDAQ: MSFT)'s Zune is a bust, GameStop (NASDAQ: GME) has decided to stop selling the MP3 player, citing the fact the product "didn't have the appeal" that it had hoped it would. GameStop has pulled the inventory from its stores and will offer the Zunes on its website until it has cleared out the entire inventory.In response, Microsoft told the Wall Street Journal that the Zune sales "have seen good momentum" of late and that the company had seen "great response to our spring release." Translation: "Believe us not your lying eyes."
The failure of the Zune and similar iPod wannabes indicates that Apple (NASDAQ: AAPL) may have a bigger moat than many had expected. So far no one has been able to dethrone the iPod and as stores like GameStop stop carrying competitors, Apple's competitive advantage will strengthen.
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