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Microsoft splits up Zune team, new hardware still coming though
  • 26 Comments
by Matt Burns on February 13, 2009

zuneWhen Microsoft started laying folks off in January, we were afraid the Zune might be directly affected; it was. The big wigs at Redmond separated the Zune department into hardware and software teams. The bulk of the developers went into the software and services department where they are headed-up by the same suit that runs Microsoft’s Mediaroom and Media Center TV businesses. Interestingly enough, the hardware geeks are now working with the WinMo guys. We kind of figured it would have been the other way around.

The Zune has a great interface. The OS is really the only reason to buy a Zune. The hardware was sufficient enough, but the Zune has never been a looker. The software suite, both on and off the hardware, was always in a constant evolution in a good way.

In fact, most Internet know-alls have stated that Redmond needs to bring a bit of the Zune’s class into the stale Window’s Mobile platform. Thankfully, it seems some at Microsoft HQ have listened as the latest screenshots of WinMo 6.5 definitely have a Zune-ish feel.

The long term future of the Zune is unknown. Within a CNET interview however, Enrique Rodriguez who now runs the software side of the Zune, did state that new Zune hardware is coming this fall but also to expect the Zune service from other than Microsoft’s own line of PMPs.

Rodriguez wasn’t ready to offer details on when the Zune service would come, say, to Windows Mobile, but he did say to expect products within this calendar year that take the Zune service beyond just Microsoft’s own line of digital music players.

While E-Rod didn’t come out and say – or CNET didn’t reprint it – it sure sounds like the Zune OS will be licensed out to other hardware makers in a WinMo way. Smart move? It couldn’t hurt and only time will tell if it will work out. We have said time and time before that the software is the reason to buy the Zune and seeing the OS on different hardware could ensure that the brand sticks around in an iPod world a bit longer.

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  • Either way, splitting up the team into two is probably for the best. There’s more focus in each group now, software and hardware.

  • Well what appalls me is how the Board @ MSFT is impotent and pathetic and possibly arrogant.
    They have spent $7 Billion on the XBOX platform and delivered $130 Million in revenue. They have spent close to $2 Billion on the Zune including marketing costs and delivered less than $14 Million in revenues ( not profits) and they continue to sustain themselves.
    Wow how do people accept this crap I am not sure. I guess if you are MSFT you are too big to fail and the shareholders put up with the crap.

    • im sorry i dont know actual numbers and im not interested in finding them but i think you are really wrong ¿130 millions in revenue? that means MS has sold only 520000 XBoxs not counting games and peripherals! do yoursel a favor, im not asking you to actually research about whatever subject you may want to post about but at least use your common sense so you dont end up writting stupid comments and in the position of a ignorant looser, go back to 4th grade and learn your math you sad stupid sub-human

  • @whoindatgarden

    OMG, I want some of what you’re smoking.

    Remind me again how much $ did Google make off Google Radio? Google Books? Google Maps? Google Earth? GTalk? Google Checkout? and any of the other services which they’re launching with no business model and no revenues whatsoever?

    If you’re looking for a clueless board you’d better check how come Google still only has one revenue stream for a single product called Search.

    By the way, I have just checked your figures and I have no idea where you got them from. Xbox has delivered far more than $130m in revenues. Maybe you’re using Google Finance by mistake?

  • @TCCritic surely Google Checkout makes a percentage of every sale made, just like credit cards and paypal.

    Anyway – innovation costs money for both co’s. It was fine, but not so much in a recession

  • msft could have owned the music space. anyone remember the acquisition in 2000 when they bought mongomusic? it killed all the services like pandora etc. werent they part of apple as well?

  • The Zune seems like a decent piece of hardware, though after the New Year’s issues it had, i can’t help but question it’s reliability

  • Sometimes companies don’t know when to throw in the towel and walk away. I don’t know one person who has bought a Zune.

  • I’m kind of tired of people ripping on the Zune when they’ve probably never even used one. The Zune has an awesome feature that the iPod doesn’t: subscription music. Plus, the desktop software is about a bazillion times better than iTunes.

    Although I have an iPhone, I still carry and use my Zune every day. I love it. I’m glad Microsoft is sticking with it.

  • I’m always having to defend my reasoning for buying a Zune. I’m with you Zune’s great, I’m not knocking the Ipod but to me the Zune is the easiest to use and I love their subscription plan.

  • “…m. Thankfully, it seems some at Microsoft HQ have listened as the latest screenshots of WinMo 6.5 definitely have a Zune-ish feel…”

    And by “Zune-ish feel” I assume you mean a “Microsoft interpretation of an iPodish feel…”

  • Id rather a Zune any day. i wouldn’t own an Ipod if it was giving to me. the Zune is easier to use and has never had any reports of catching FIRE. Would you rather have a reliable gadget or one that is a disaster waiting to happen? That Zune glitch was fixed within 24Hours. try getting that fast of a fix with Ipod.

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