In a post yesterday, Mary Jo Foley at ZDNet wrote that she had heard Microsoft was working on a new entertainment store called Zune VideoX. (It's hard to imagine another product having the letters v, x and z in the name. ) The VP of Entertainment and Devices eHome Division is said to be leading the new initiative, and a source said "eLive was renamed and recrafted to Zune VideoX, and the eLive vision scaled down to focus on Zune." And what is the oddly-named Zune VideoX going to be?

Zune VideoX is not Zune Marketplace revisited, sources say. Instead, it is Microsoft’s attempt to apply the lessons learned with the success of the Xbox Live Marketplace to the Zune market, said one source who asked not to be named. It would be a single hub where Zune users could buy and download music, videos, TV shows and more entertainment content.

At his Digital Noise blog, Matt Rosoff has a good recap of what's going on with Microsoft's Zune that covers staffing, the success (or lack of) of Zune as a music player and possible future features.

I write all of this knowing that few people care about the Zune. But I think it's a decent music service that is well integrated with the Zune device. There's potential there. Somewhere.