Sony could be shutting down its digital music store, Sony Connect, according to online reports. Sources tell Digital Music News that some layoffs have already occurred, with other employees negotiating exit packages. It is unknown when Sony Connect will be closing shop, but it could be within the next few months.

Another source described the potential shutdown as “unsurprising,” as Sony has struggled in the competitive digital music market that is already dominated by iTunes. Music purchased via Sony Connect is only compatible with Sony’s line of Walkman MP3 players.

Paidcontent.org adds that Sony will redirect its focus on the Playstation, with many Sony Connect employees transferred to that division of the company. Roughly 20 positions will be eliminated from the Connect division, with Steve Banfield leaving his post as head of Sony Connect.

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