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Microsoft has knifed its Zune team’s software and hardware divisions, part of it going under leadership of Enrique Rodriguez , VP Microsoft’s Mediaroom and TV businesses and the hardware section to report to Tom Gibbons. Gibbons heads design efforts of Windows Mobile unit. The division can be traced back when Microsoft announced its massive layoffs and the poor sales of Zune during the holidays. We aren’t sure about how many of those layoffs hit Zune but Microsoft hasn’t really been successful with its device. Rodriguez did point out a few things that need to be done and generating revenue was one of them. Apart from that, the idea is most probably to have more people focus on the entertainment side, he stated:

The aggregate of people is more today than it was two weeks ago. We’re taking what used to be 300 people there, 300 people there, and 300 people there…into being 1,000 people all around the same vision.