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It wasn't a product placement any more than a Sony Walkman was a product placement...

It was a joke, like saying, "You're finally with the times. Drop your tape deck, here's a Zune!" It wouldn't have landed the same way with an iPod.

>Why the product placement for a product that's long discontinued?

Not everything is a "product placement".

In this case it was a nostalgic, offbeat item, to funnily convey those things about the character that would use one, like the Walkman and music choice was in the first movie.

It is a joke.