Is the Zune facing extinction?

I have been reading some negative press news circulating from different blogs and web publishers about the allegedly discontinuation of the Zune. They are speculating that Microsoft may be well near to pulling out from the Zune division.

"Microsoft is more than happy with its position in the mobile phone space. In addition a Zune phone may make no sense at all, given Microsoft’s less than impressive Zune music player and the general consensus that Microsoft might remove the device from the market soon. "

- Excerpt from Nokia and Microsoft in alliance to make Zune phone?

"There is speculation form some quarters that this will be Microsoft’s last attempt to boost the device’s sales before dropping the project entirely."

- Excerpt from Microsoft looks to revamp Zune

I have read them myself and feel than these writers may have been misleading the readers and discouraging them to buy Zunes for fear that anytime Microsoft may just abandon the product line. I don't know if these are based on facts or just hearsay but there should be discretion and responsibility in publishing news about any product's discontinuation as it will affect the public perception and acceptance of, in this case, the Zune.

One conflicting news would be from cdfreaks.com, an article stressing that Microsoft is not pulling out from the Zune.

"Zune is not fading away and again, we are pleased with our progress against an entrenched competitor (Apple)," Microsoft said. "Zune is a long term investment for Microsoft. Today there is much focus on the stand alone portable media player. But if you look across the Entertainment and Devices Division at Microsoft you can see how, in the not too distant future, a customer’s entertainment experience could flow across the PC, Xbox, mobile phones and automotive."

"While nothing specific has been announced by Microsoft, the company said it is not done in the MP3 player market, and consumers should keep their eyes on Zune."

- Taken from Microsoft: Zune success good, still not satisfied

Microsoft should send an official press statement regarding this one or they could lose potential customers if these negative news on the zune's demise continue to spread.

Do you think Microsoft will drop the Zune line?