There was a lot of rumor about a Zune phone and now we have heard (thanks to jkOneTheRun) that there are talks of a Zune Phone. I just wish that Microsoft would create something new rather than competing for already emerging technologies.
Although, I can agree it would be nice to see more multi-touch technology as I see this as the wave of the future. Every time I see a multi-touch device I think of the interface used by Tom Cruise in the Minority Report. Hey Microsoft here's a cool idea: Allow me to project onto a wall or into mid-air what I am playing on my Zune device. Now that's something I haven't seen from any other portable media device...
We have totally unconfirmed information from a reader who wishes to remain anonymous that Microsoft is indeed working on a Zune phone. This source had information about a meeting this week in Redmond that was planning a Zune phone to compete with the iPhone. According to this information the Zune phone will be based on a specialized variant of Windows Mobile 7 and key functionality will be centered around WIndows Live Services. On the hardware side the ZunePhone would be touch-screen based using multi-touch (surprise) but other than that not much is known.
[SOURCE: jkOnTheRun: Zune phone really in the works at Microsoft?]
Today Robbie Bach president of the Entertainment and Devices division for Microsoft stated that there will be no ZunePhone stating “We don't make phones ourselves. We don't have any plans to make phones ourselves.”
He did say that the Zune will eventually have a touch screen “Take the device independent for a second and just assume that over time where there's a screen, touch will be part of it. It's not going to matter what the product line is. You're going to see it be a cornerstone of the work we do.” So it seems that touch will become standard on Zunes when this happens.
Paraphrased from ACE's post on ZuneBoards

Just a week ago, Microsoft acquired the famous makers of the Sidekick, Danger Inc. According to this press release, this "acquisition will align Danger’s nearly 10 years of expertise in the mobile consumer space with Microsoft’s vision to provide innovative and compelling mobile experiences to a growing base of customers."
Rumors of the Zune Phone were brought up, debunked, revived, and burned again. However, I couldn't help but noticing a paragraph in the press release that read, "Combining these services with Microsoft’s connected entertainment and experiences technologies, including MSN, Xbox, Zune, Windows Live and Windows Mobile, will provide Microsoft with the tools to accelerate its work to create industry-leading entertainment and communication experiences for consumers." Could this be the birth of a possible Zune Phone? What do you think? Feel free to share your opinions and thoughts in the comment box.
When the Zune was first introduced there was plenty of skepticism about its adoption into the consumer electronics world. Market research groups such as HitWise indicated that during the holiday season there was a large jump of visitors to Zune.net. Then Zune users speculated over whether Microsoft would be producing a Zune Phone, which was quickly squelched early on by Bill Gates during the CES 2008.
Zune has been toted as the “iPod Killer” and is slowly climbing up the ladder. So what else is Microsoft trying to kill?
Yep. I know there is no Zune Phone. I just posted that a couple posts ago, but KaseyArt worked so hard on some ideas that I had to share them anyhow.
I am no Nostradamus, but I didn't expect to see a "Zune Phone" in 2008...
"No, we won't do that. In the so-called smart phone business we will concentrate solely on software with our Windows Mobile program," Gates was quoted as saying in the interview published on Wednesday.
We have partnerships with a lot of device manufacturers from Samsung to Motorola and this variety brings us significantly more than if we would make our own mobile phone," he added.
I think I have to believe, but didn't Bill Clinton tell us that he did not have relations with that woman?
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