The major competitor to the iPod — or at least what they hoped would be a major competitor — Microsoft’s Zune, is dead.

[ad#Google Adsense 300×250 in story]According to a report on Business Insider, Microsoft is killing off the Zune, ending the run at what the company hoped would kill Apple’s iPod. Microsoft will reportedly sell off existing inventory, but will not introduce any new models.

The Zune could play music, video and podcasts, similar to the iPod. However, despite its best efforts, Microsoft could not make the Zune the cultural phenomenon that Apple product with the iPod.

Business Insider theorizes that the best parts of the Zune software can be put into Windows Phone 7 and Xbox.