Neither is it likely that MS will just cut the Zune project completely either, for the same reason. But a big cut in the Zune project will mean the same thing as killing it. MS needs to trick buyers into thinking that this product is alive and still being developed, its all PR/lies.

But then there’s Ballmer, who should at this point have some sort of clue, that the Zune is a brick that cannot be sold. What does Ballmer need, a sign on the Zune departments door, that says “cut here first?” Zune is the ideal canidate for the next cuts (layoffs) at MS. A small start to stop the bleeding of MS money. ONly a small start, as Zune never really sold much.

Xbox360 is a much bigger problem for MS. Why, because XBox360 does make money on game sales and networking. Although the console sales itself are not money makers, and having to replace them up to 10 times is losing MS lots of money. And they still have a high failure rate after all this time. For this reason, and this reason only (there are many other reason as well) Ballmer and Bach should be shown the door.