Virgin Pulls the Plug on its iPod Competitor

Virgin has closed the doors of Virgin Electronics--a subsidiary that had originally been created to compete with Appleis iPod--due to poor sales. The company said its 5GB MP3 player failed to hold its own during the holiday buying season, especially against the iPod mini.

Virgin is withdrawing all products but will continue to honor warranties, The Evening Standard reports. Virgin Electronicsi efforts in the speaker and earphone are also being cancelled.

Virgin did not disclose how much the failed operation cost the company.