Microsoft: Reports of Zune's death greatly exaggerated

The still-struggling Zune—hardware and all—isn't going anywhere, Microsoft execs told Wired this week, despite some recent speculation to the contrary.

A Zune spokesman told Wired blogger (and my former colleague at CNET) Eliot Van Buskirk that "we're not getting out of the hardware business at all," and that Microsoft remains "deeply committed" to the Zune—and yes, that includes the boxy HDD- and flash-based hardware players.

Speculation about the Zune spiked after this Financial Times story, in which Microsoft CEO Steve Ballmer says that we "should not anticipate" a Zune phone (no, really?) and that Redmond (as the FT paraphrases) "would stick to its strategy of developing software to support a range of mobile devices."

The Financial Times story then goes on, noting that Ballmer "seemed all but ready to throw in the towel on the Zune mobile device" during his CES keynote, and speculating that "if there is a future for Zune, it lies in planting the software and online service linked to the player in other devices."

Indeed, that line of reasoning seems consistent with recent rumors that Microsoft is prepping "a set of consumer-focused premium service" for Windows Mobile phones, which might include "Zune-like services."

But Zune spokesman Adam Sohn insists that the Zune hardware is here to stay. "A lot of people ... took [Ballmer's comments] and ran in the wrong direction," Sohn told Wired, adding that it's not a question of "either/or," for the Zune hardware and software, but rather "a 'both/and' situation."

OK, sounds good—but for now at least, the Zune software has yet to land in, say, a Windows Mobile phone or the Xbox 360 (a platform that seems ripe for Zune services).

For example: I'd been hoping that Ballmer would announce at CES that, perhaps, the Xbox was getting Zune Marketplace access, or that Xbox Live movie rentals/TV shows would be compatible with the Zune … or that a Zune mobile app was on tap for a Windows Mobile-powered smartphone.

But … no dice, and beyond the standard platitudes ("there's a lot of opportunity … I don't think anything's off the table … all things are possible," Sohn told Wired), no promises either.

Related:
Microsoft Plans to Continue Zune Hardware, Embrace Other Platforms [Wired]