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Microsoft will be phasing out the brand started a while back and off late have been strengthened by more rumors that Zune will be merged with Xbox LIVE and Windows Live and  a Microsoft patent was unearthed containing pictures and descriptions of a bantam media player. The first thing that comes to mind is an iPod nano competitor and one has to wonder when exactly the plug was pulled from such an initiative………

Manan Kakkar at Techie Buzz revealed several images of what is believed to be Microsoft’s Zune Nano, a competitor to the popular Apple iPod Nano. Microsoft’s patent application was filed on April 27, 2009 and issued on Tuesday. Microsoft describes the images as “a front perspective view of a media player showing our new design.” Microsoft has not produced a new Zune device since the HD, released on September 15 2009. The company is believed to be rebranding the Zune name into Xbox or Windows Live. Company officials confirmed on Tuesday that Xbox is the core of Microsoft’s entertainment platform. The software giant looks likely to launch a Fusion set of products, services or games at the E3 entertainment expo next week. Stay tuned to E3 to hear if there’s any hints at what Microsoft may plan for its Zune brand and devices.You can view the patent filing by clicking here.

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