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Microsoft released this statement:
Additional flash Zune devices (Zune 4GB, 8GB and 16GB) and hard drive devices (80GB and 120GB) will continue to be available at retail until sold out, though we will not continue to manufacture those devices. In addition to the new Zune HD device, we will also be launching an updated Zune software and service, and the Zune video service will be available on Xbox LIVE this fall. We are committed to our strategy for Zune which is to provide a great entertainment experience through software and services across multiple screens and devices.
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