Company representatives confirmed the shuttering Tuesday. The Virgin Group-funded companyfrom New York to Silicon Valley in July of last year to draw more talent to its creative digital products.
At the time, Virgin Electronics CEO Greg Woock commented that the digital audio market was still wide open.
"The digital music market is in its infancy, and there's plenty of room for innovation--especially from a strong, branded alternative," Woock said in a statement. Virgin Electronics set out to distinguish itself through particular attention to the consumer experience and to innovation.
However, the field became quickly crowded. The runaway success of Apple Computer's iPod line of music players brought more companies to the market, and many big names such as, Sony Electronics and are squeezing out smaller rivals.
Virgin's closing is effective immediately, with all products discontinued. The company said it will honor warranties on previously purchased devices.
Gadget blog Engadget first reported on Virgin's closure.