The reports have been flying left and right about Microsoft working on and releasing a new phone based on the Zune, basically, the Zune Phone. With a Zune update and the driver .INF file showing that there is a Zune and a Phone entry as evidence, and a job listed by Microsoft for "working knowledge of cell-phone 2G and 3G technologies" to back it up, it looked promising.

However, Neowin decided to go for some formal acknowledgement from Microsoft themselves. As usual, Microsoft has denied the claims. Although, in this industry, most companies cannot comment on hardware and software that has not been formally announced to the public. So, while it is a denial by Microsoft that a Zune phone exists or is in the works, it isn't a total shutout. I know I would love to see a Zune phone to combat the iPhone. I prefer the Zune over the iPod any day of the week. I've only used the previous versions, but am looking forward to a ZuneHD very soon!

As a related note, Windows Mobile 7, which supposedly sports the Zune interface, is said to be revealed in Barcelona at the Mobile World Congress conference.

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