As Mary-Jo pointed out a couple of weeks ago, some of the Microsoft staffing cuts were made in the group that is responsible for the Zune, among other things. CNET reported late last week that the Zune team was split in two with new hardware and software teams. This split was actually made back on 22 January and it was stated that it was not due to Zune sales.
The majority of the Zune staff was focused on software and services and they will be reporting to the Mediaroom and Media Center TV business units VP, Enrique Rodriguez. Microsoft said they are looking to expand the Zune service to more than just Microsoft's own devices. Rodriguez said we could expect Zune service on other digital media players before the end of 2009.
The hardware team now reports to the lead of Windows Mobile so maybe we will actually see the Zune service on their mobile phones. I personally think Windows Media Player Mobile is an extremely poor piece of software and would love to see the Zune UI and services brought to Windows Mobile. I also canceled my recent subscription to the Zune Marketplace because I really find listening to music on my Nokia devices to be something I do daily and have no real need for a dedicated digital media player.