GameStop has decided to stop selling the Microsoft’s iPod killer, Zune, due to its poor performance in terms of sales.

Last year Microsoft has announced that its Zune has sold one million in just six months after the launch, but since then it seems like the sales have slowed down considerably. It took almost a year for Zune to reach its second million of units sold.

Late last year, Microsoft has revamped its Zune lineup by introducing new models and a brief period it seemed like the company had found its way to success.

In November 2007 the 80 GB version of Zune media player ranked as the No. 1 bestseller in Amazon’s list of top-selling MP3 players and it was a sold-out at various retailers in the US such as Best Buy or Circuit City.

However, Zune failed to be a match the iPod sales. According to the latest financial results announced by Apple in the second quarter of 2008 the company sold 10,644,000 iPods.  

Despite GameStop’s decision, Microsoft seems to be determined to stand by its Zune. Adam Sohn, Microsoft's Zune marketing manager, noted that Zune sales "have seen good momentum" during the last few months.

Also, at the beginning of this month Microsoft has expanded the content available on Zune online store, by signing a new distribution deal with NBC.

Video titles from COMEDY CENTRAL, FUNimation Entertainment, MTV, NBC Universal, Nickelodeon, Starz Media, Turner Broadcasting, UFC, VH1 and others are now available on Zune store. Until this deal, only music videos were available on Zune Marketplace.

Last year, speaking about Zune, Microsoft's Entertainment & Devices Division President Robbie Bach said that Microsoft aims to release a new Zune every year.

Writing on CNET’s blog, Digital Noise, Matt Rosoff noted that Microsoft has been planning some sort of update for the 2008 holiday season.