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Microsoft Corp.’s mysterious Zune phone has been discussed for several years since the world’s largest maker of software released its Zune portable digital media player, but Microsoft has never confirmed any plans on the matter. However, according to a newly reported rumour, the software giant will indeed release its rival for Apple iPhone, T-Mobile G1 and other similar devices next year.

Microsoft is in talks with Verizon Wireless operator in the U.S. regarding potential launch of a multimedia cell-phone with touch-screen early in 2010, reports the Wall Street Journal. According to the published information, Microsoft’s cell-phone will belong to a rather mystifying “Pink” project, which is usually considered as a yet another part of broad Zune initiative.

No technical details regarding Microsoft’s first own-brand cell phone are known, but many believe that Microsoft will primarily rival Apple iPhone and similar handsets with its phone. There are almost no rumours concerning Microsoft’s plans to compete against Sony PlayStation Portable video game console.

In fact, it remains to be seen whether Microsoft proceeds with own-brand cell phone, or will create a platform and let other companies make phones featuring a set of capabilities determined by Microsoft.

Microsoft did not comment on the news-story.

Tags: Microsoft, Zune

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