A Sure Sign that Zune Is a Loser?

A little less than a year ago, Microsoft launched its iPod competitor, the Zune, for $250.

Within 7 months, the price had fallen under $200. Now, 4 months later, the Zune is $150 and being sold through Woot.com, the online equivalent of the Dollar Store.

I think it's safe to say the Zune wasn't exactly a home run.

Of course, an alternate explanation is that Zune version 2 is on its way and Microsoft is just clearing out the last of its old inventory through a lower-visibility channel. We shall see...

Update: Turns out that Woot had 6300 units and sold all of them over a 21-hour period. Seems demand for Zunes might be fairly elastic.