[sgerenser]

Zune was actually pretty popular and had its fans for its time, despite getting completely outsold and outshone by the iPod. I think it didn’t get cancelled until smartphones were clearly starting to replace dedicated music players.

If I had to guess it would be the Kin devices that evolved from the purchase of Danger, those things clearly fit the OP’s description: https://en.m.wikipedia.org/wiki/Microsoft_Kin