Microsoft Reports Zune Profits Way Down
Late last week Microsoft announced the company’s quarterly earnings as well as the fact that the company was laying off five thousand people.
While the earnings are no less important, the financial details were a little overshadowed by the cutbacks in staff at the Redmond company. Rumors had been doing the rounds since just before the holidays and the confirmation made quite a splash, especially the memo from Steve Ballmer. The company was laying off 5,000 -- 1,500 now and the rest over the next 18 months. Microsoft would continue to hire during that time and net staff cutbacks would amount to about 3,000.
Now that things have begun to settle down, little tidbits about the company’s quarterly revenues are starting to get some attention, like just how much money the company’s MP3 player is making.
According to Engadget, Microsoft’s earnings report last week reported also contained a $100M decline in Zune revenue, a 54 percent drop compared to the same quarter last year. Ouch. Meanwhile, Apple during its last quarter set new records for iPods sold.
The Zune made headlines earlier this year when users’ devices freaked out when the clocks struck midnight and the December 30 turned into December 31. 2008 was a leap year and apparently 30GB Zunes didn’t know what to make of the extra day. The Zunes righted themselves once January 1 came around.