Chris Pendleton is reporting today that the Photosynth team is moving into the Virtual Earth product group.

Ever since the launch of Photosynth there's been much discussion about the natural synergy of it and Microsoft Virtual Earth. Well, it's now official that you can begin additional speculation on what it means that we've moved the Photosynth team into the Virtual Earth product group. No longer is Photosynth just a Live Labs research project - it no(w) has full funding and backing from the Virtual Earth team. It helps that we get all of the people that worked on it too.

Obviously this means we should be seeing some integration of the two technologies, should be exciting.