valleywag – When political candidates concede a campaign, they praise the “long journey” and talk about how much they’ve “learned.” In the same mode, Microsoft’s CEO has all but said he’s given up on the Zune.

Micorosft’s music player has always been an also-ran, a late-to-market entry which mimicked the iPod but offered no new features consumers found compelling. Interviewed at the Consumer Electronics Show in Las Vegas, Ballmer backed into an admission of failure:

In digital music, meanwhile, 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. But he suggested that the focus of competition in digital media was moving onto ground that Microsoft understands well: software.

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Asked if Microsoft would counter with a “Zune Phone”, Mr Ballmer said: “You should not anticipate that.”

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