While Apple is known for never discounting current products (and they enforce this among their retail partners as well), Microsoft has been “generous” with discount promotions, coupons, giveaways and other methods in order to “sell” the 2 million units. You can find numerous reports online for coupons and sales of new Zune players for close to 50% off the retail price.

If the Zune line continues, then it will only be because Microsoft doesn’t want to concede defeat, not because there is any business case for continuing.