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Zune Bloodbath Happening at Microsoft?

Posted by Nino Marchetti

ZunegloomThe bloodletting right now going on at Microsoft may be hitting the Zune group particularly hard, though no specific details on layoffs by groups have been made public. Here is what we do know at this point, based upon the ever buzzing blog news engine:

- ZDNet Microsoft blogger Mary-Jo Foley reports, via her company sources, that the bulk of the first immediate 1,400 cuts are coming from Entertainment & Devices group. These guys are the ones responsible, of course, for the Zune.

- Engadget noticed, via Microsoft's latest quarterly statement, that Zune platform revenue decreased “$100 million, or 54 percent compared to the same quarter last year, due to falling device sales.”

Anyway you look at it, it is not a good time for the Zune at Microsoft headquarters. Could the buzz earlier this month about the Zune's future as a viable platform actually be true? We will have to see in the coming days what happens to truly know.



the drastic Zune sales decline has to be a direct result of the device's freeze-up that happened last New Year's

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