Microsoft has split the Zune team into separate hardware and software units, and folded those units into other Microsoft organizations, according to a CNET report.
The move seems to further signal a shift in  Microsoft’s focus from Zune hardware to Zune software and services. The software group is going to the Media Center TV division, led [...]

Zune exec Joe Belfiore is moving to Microsoft’s Windows Mobile team, in what may be another indication of plans to spread the Zune media experience into Windows smartphones.
This is fueling speculation that Windows Mobile is gearing up for significant changes. Todd Bishop of TechFlash posits that an iPhone competitor could be in the works, or [...]

I’m in all-day meetings with the Zune team on the Microsoft campus.
More details will be coming today. Stay tuned.
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Check out this Microsoft job posting – it’s looking for a Software Development Engineer for the Zune team. In doing so, it gives a little insight into Microsoft’s vision for Zune:
“The Zune team is embarking on the mission to create a “Connected Entertainment” experience, realized through the Zune service, that spans multiple devices such as [...]