Microsoft cuts affect the Entertainment and Devices group

According to a good friend of mine at Pocket PC Talk is hearing from his sources that Microsoft is immediately laying off 1,400 people. A big bulk of these lay-offs are in the Entertainment and Devices group. This group is responsible for Xbox, Zune and Windows Mobile products.

So in the catch up arena against Apple (Music players and Mobile Phones) they probably will have to adjust the road map and maybe their targets. The question really is, if these economic tough times will eliminate certain projects and some customers have to lose out in the options.

The total lay-offs are going to be 5,000. I will keep my fingers crossed that Microsoft is still able to deliver us competitive materials in the future.