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No matter how nicely the name rolls off your tongue, a ZunePhone is looking less like a reality. In fact, an article in the Financial Times suggests that Microsoft CEO Steve Balmer has practically given up on the Zune altogether. “In digital music… Mr Ballmer seemed all but ready to throw in the towel on the Zune mobile device, which has failed to gain ground on Apple’s iPod,” the article says. Balmer believes that the market is shifting towards “general purpose” devices such as the iPhone and iTouch, a statement that left the door open to a question about the Zune phone’s chances. “You should not anticipate that,” Balmer replied. MS wants to focus instead on making software for the mobile devices that are already successful. [Financial Times via Silicon Alley Insider]

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