DVR pioneer TiVo is reportedly exiting the hardware market and will instead shift their focus towards software. The company recently let most of their hardware team go and is only retaining a skeleton crew of two engineers to help with support for current and upcoming third-party devices according to sources within TiVo as reported by Wired.

In a statement on the matter, the DVR maker said they are continuing to balance appropriate levels of staffing and expertise necessary to support their existing hardware business. What's more, they need to allocate resources where strategic growth opportunities exist and there is no doubt that they expect growth in the cloud-based delivery aspect of the business.

The news shouldn't come as a total shock as executives have hinted that a change was in the pipeline for quite some time. Jeff Klugman, executive vice president and general manager of products and revenue, told the publication last May that software was the future of the company.

True enough, TiVo has been showcasing some different technology as of late. At the Consumer Electronics Show earlier this month, a prototype DVR called nDVR was shown that was capable of storing your recordings in the cloud - a move that would no doubt offer gobs more storage than what could be made available locally. The recordings will be made available via the DVR, mobile devices and the Roku app, we're told.

Instead of offering the nDVR in stores, the machine will be made through your cable or satellite provider.