Microsoft closing UltimateTV unit


In another shuffle of its TV strategy, Microsoft Corp. is closing its UltimateTV
unit, getting out of the personal-video-recorder business but shifting the
service portion of the business off to its MSTV division.

UltimateTV so far has been sold only as part of a DirecTV Inc. direct-broadcast satellite receiver that
allowed TiVo Inc.-like recording of TV shows and slow-speed Web surfing.

But like Tivo, UltimateTV hasn't taken off.

Microsoft will continue to support existing UltimateTV subscribers and
develop the software as part of MSTV, which will inherit a chunk of UltimateTV's
500 employees.

Another chunk of hardware developers will go to Microsoft's X-Box game

The remaining 168 are out of jobs but may be redeployed elsewhere in the