Zune Team Re-org Indicates Refocus

By  |  Friday, February 13, 2009 at 9:09 am

Zune LogoIna Fried over at CNet has the scoop on the reorganization of the Zune team, which would now be split into two groups. From her post, this is how it will go down:

The software and services portion of the Zune team–the bulk of its staff–will be added to the portfolio of Enrique Rodriguez, the vice president who currently runs Microsoft’s Mediaroom and Media Center TV businesses. The hardware team, meanwhile, will now report to Tom Gibbons, who also leads the hardware design efforts within Microsoft’s Windows Mobile unit.

Clearly, the positioning of the team provides a lot of clues as to the future of Zune. It’s not going to be in the player itself, and this is probably a smart move. Zune has not taken off, and is well behind even other Apple competitors in the space.

Microsoft is wise to leverage its strengths elsewhere — in this case the mobile and multimedia segments of the electronics industry — to generate some interest in Zune. Of course Rodriguez is not saying that the Zune player itself is no longer its focus, but lets not beat around the bush, the writing has been on the wall for some time.

Redmond needs Zune to be profitable, especially in economic conditions such as what we’re seeing these days. Investors have little tolerance for companies that aren’t making money, or wasting it on wild goose chases.

Whether the Microsofties like it or not, thats pretty much what the Zune effort has been up until now.



2 Comments For This Post

  1. ogman Says:

    Unfortunately, Microsoft is working real hard on losing Zune Marketplace customers. The recent addition of the ability to keep 10 songs downloaded through Marketplace subscriptions is hampered by confusing and possibly illegal policies/instructions on which songs or albums can be kept and how they are paid for. I recently ran into a problem where I thought that the song credit would be applied and instead $10 worth of points were taken from my account. The instructions clearly state that song credits will be applied to songs or albums. Microsoft has posted completely false and confusing policies and then refuses to refund points when the customer’s points have been wrongly taken. About the only thing the customer support people seem to be able to do well is cancel the customer’s account.

  2. Dean Says:

    I love my Zune. But to be quite frank, I’ve never visited the Zune Marketplace. No reason to. I buy my music from Amazon.com.

    The Zune HW was everything I was looking for (maybe with a little more battery life) but the SW if definitely a weakness. Why can’t I listen to the music on my Zune via my PC while I’m traveling? Why can’t I drag and drop content to the Zune?