Rumor Mill: Microsoft developing Zune phone

CrunchGear reports a "sound tip" from within Microsoft that the software goliath is developing its own mobile handset, which it will brand under the Zune name. According to CrunchGear, the device will be a smartphone that will not run on Windows Mobile, but rather employ an interface similar to the existing Zune music player--the device will emphasize connectivity, and reportedly boast the capability of synchronizing with the Xbox 360 and streaming video from the system. Current estimates anticipate the phone will hit stores in time for the 2007 holiday season, roughly six months after the projected retail release of rival Apple's iPhone.

For more on the Zune handset:
- read this CrunchGear article

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