CNET's Ina Fried reports that on Jan. 22, Microsoft split its Zune digital music team in two: one focused on the software and services, which it plans to expand onto other, non-Microsoft devices, and another focused on the Zune hardware.

[Update, 12:34 p.m.: Added comments from Robbie Bach, head of Microsoft's Entertainment and Devices Division, on the rationale for the change.]

A German composer, Johannes Kreidler, has found another interesting use for Microsoft's new Songsmith musical accompaniment software. His composition, Charts Music, derives melodies from stock-price charts of Lehman Brothers, Bank of America, GM and other major global companies and market indexes, as well as unemployment rates and other indicators. The melodies are plugged into Songsmith to create short, unsettling songs for each chart. Kreidler doesn't limit himself to traditional financial indicators. He also includes charts of Iraq War deaths and growth in the porn industry. [Update, 6:05 a.m.: Kreidler explains more about the how and why of his composition after the jump.]

Via the Telegraph.

LAS VEGAS -- Amateur singers and song writers, it's time to come out of the shower.

Microsoft has a new tool that automatically generates backup music to go with original melodies and lyrics sung into a computer. Listen to songs created with the software after the jump.

LAS VEGAS -- Robbie Bach, president of Microsoft's Entertainment and Devices Division, talked about layoffs ("you won't hear us comment"), the great 2008 for Xbox and its impact on profitability, Microsoft's deal with Verizon Wireless (creating a good mobile search experience is the key), where entertainment fits in Microsoft's mobile strategy and more. Read on for a condensed transcript of my conversation with him Wednesday afternoon.

If you've always wanted to rock out with Eddie Vedder to "Jeremy," "Even Flow" and "Black" -- and who hasn't? -- your chance is coming in March. Harmonix, maker of the hit music video-game series "Rock Band," announced a deal today to release "Ten," the breakout album from Seattle band Pearl Jam, as downloadable content for the "Rock Band" games on the same date -- March 24 -- that the band re-issues the 1991 smash hit. Pearl Jam announced the re-issue of "Ten," including four new and expanded editions with remixes and other goodies, last week. ("Ten" album cover via Pearl Jam's Web site.)

Cross posting from Brier Dudley's blog:

Microsoft's Zune still isn't going to catch Apple's iPod, but you've got to give the group credit for creative approaches to music licensing.

Zune is announcing Thursday that people who subscribe to its $15 per month Zune Pass subscription music service will be able to download and keep 10 songs a month. It also cut device prices earlier this week, with the base 4 gigabyte model falling to $99 from $129.

More details are here.

KEN LAMBERT / THE SEATTLE TIMES

Employees arrive at Microsoft's annual company meeting.

At Microsoft's company meeting today, CEO Steve Ballmer was in full cheerleader mode, running around the stage, high-fiving Microsoft employees at Safeco Field, breathing hard and yelling into the microphone, said one observer, who asked to remain anonymous while describing an event that was closed to the public.

Ballmer sought to put employees' concerns to rest, particularly around competitors Google and Apple, our tipster said.

In particular, Ballmer said he is often asked why Microsoft doesn't do its own iPhone.

LOS ANGELES -- While players are still flocking to games with guns and swords, it's the axe that has been the surprise weapon of choice. That would be the electric guitar in "Guitar Hero," which has taken the games world by storm in recent years. As the popularity of music games has skyrocketed, more musicians are getting into the act and seeing video games as an important distribution channel, as illustrated in several announcements from Microsoft and its partners today.