According to the Microsoft Reader site, Microsoft is discontinuing the Reader .lit application effective August 30, 2012. They have no plans for an alternative application for the Reader.
What does this mean for you the indie author/publisher?
Well, ... if you were providing your ebook in the .lit format, it means fewer purchasers.
If you weren't using the .lit format, it doesn't mean anything to you.
I think Microsoft realized the Microsoft Reader never really made any significant inroads into the ereader market ... and ... it's a smart move on their part to pull the plug and take the Reader off life support.
So, what's your opinion?