Microsoft’s recently released earnings report outlined a company hard hit by the economic downturn. Soon after the the report came out, CEO Steve Ballmer announced that the company would be laying off some 5,000 employees. Among the most affected is the company’s Entertainment and Devices division, which manufactures the Zune.
Microsoft ended the week with a 10-Q filing, which outlined the device’s woes. “Zune platform revenue decreased $100 million or 54 percent, reflecting a decrease in device sales.”
But Microsoft insisted that it’s not abandoning the plucky little DAP. “Zune is committed and on track to deliver against our current product roadmap, and [we] are as focused as ever on providing great software and content-powered experiences to help bring our connected entertainment vision to life,” spokesman Adam Sohn told Paid Content.
However you might feel about the device itself, the Zune has always seemed like a pet project for the company–an attempt to stake its claim in the market share dominated by Apple. So if this downward trend continues, how will the company hold onto its beloved Zune? How about folding it into another healthier division; like, oh, say, Windows Mobile? Web speculation says “maaaaaybeeee.”
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