Last week, Microsoft announced that the Zune was really not as wonderful as this guy once thought. Well… Microsoft may be slightly more delusional, but Zune Man and sales don’t lie—Zune numbers are in the toilet.

On the heels of Microsoft layoffs, the company said (via WSJ) that Zune sales were down a whopping 54 percent during the 2008 holiday season. Meanwhile, Apple is laughing all the way to the bank. Although it seems tiny, iPod sales were up 3 percent over the same period. That’s no small feat, given the current economic climate. 

So the big question is: Can Microsoft save the Zune? More importantly: Is it worth saving? We have seen rumors of a Zune phone for a while now. Although it seems unlikely at this point, I’m not sure if that would even help. After all, it just seems too little, too late.

I am wondering how many of you out there have a Zune. Why did you buy it? Are you pleased with the unit’s performance? Sound off in the comments section below.

Rachel Cericola - Contributing Writer

Over the past 15 years, Rachel Cericola has covered entertainment, web and technology trends. Check her out at www.rachelcericola.com.