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Xbox 360 overseer J Allard ran the project, codenamed 'Argo', staffed with Xbox and MSN Music Store developers who worked on 'Alexandria', finalized as Zune Marketplace. The first-generation Zune device was created by Microsoft in close cooperation with Toshiba, which took the design of the Gigabeat S and redeveloped it under the name Toshiba 1089 as registered with the Federal Communications Commission (FCC) starting in 2006. In 2008, Microsoft shut down the MSN Music licensing servers for PlaysForSure only two years after promising users the servers would be available for five years. After only two years, Microsoft announced the closing of MSN Music in 2006 immediately before announcing the Zune service without PlaysForSure support. MSN Music was created in 2004 to compete with Apple's iTunes services and used the Microsoft PlaysForSure DRM protocol. Zune music and devices were follow-on to Microsoft's MSN Music service.

5.1 Zune Marketplace successor services.

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1.6 Discontinuation of Zune software and services.In 2012, all remaining Zune products were discontinued, with digital content distribution from Microsoft starting under the Xbox Music and Xbox Video brands. Microsoft discontinued all Zune hardware in October 2011. remained low, well below Apple and also lagging the SanDisk Sansa and Creative Zen. However, its overall market share in the U.S. Three hard disk players ranging from 30 GB to 120 GB were released, alongside six flash players. Microsoft aimed to challenge and beat Apple, whose iPod line held a majority market share.

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The Zune started as a line of portable media players (PMP) created in cooperation with Toshiba. Zune was also the provider of music streaming for United Airlines in-flight, after a partnership in 2010.

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Zune consisted of a line of portable media players, digital media player software for Windows PCs, a music subscription service known as a 'Zune Music Pass', music and video streaming services for the Xbox 360 game console via the Zune Software, music, TV and movie sales, and desktop sync software for Windows Phone. Zune is a discontinued line of digital media products and services marketed by Microsoft from November 2006 until its discontinuation in June 2012. Groove Music and Microsoft Movies & TV, Windows Phone 8 Wi-Fi (Zune-Zune, Sync-PC, Microsoft Surface) J( Zune 4, 8, 80) Septem( Zune 16, 120) Дў010вЂ“2012 (Mexico, Brazil, Australia, New Zealand and select markets of Europe and Asia) ДЎ.8in glass LCD screen, resolution 240Г—320 (Zune 4, 8, 16)ДЈin QVGA LCD screen, resolution 240Г—320 (Zune 30)ДЈ.2in glass LCD screen, resolution 240Г—320 at 4:3 aspect ratio (Zune 80, 120)ДЈ.3in glass OLED touchscreen, resolution 480Г—272 at 16:9 aspect ratio (Zune HD)