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Zune is an umbrella term from Microsoft that will cover the upcoming portable media player, the software that will drive the device and a service for acquiring and sharing media.The project was previously known as codename Argo. The Zune is currently under production at the Microsoft headquarters in Redmond, Washington.
It was previously thought that Zune was one of Microsoft's media players under "Project Argo",similar to Apple's iPod family. However, it now seems that the "Zune" brand will be used for all media players and other services, throughout the new project
Quote:
In an interview with Billboard, Chris Stephenson of MSN Entertainment Business affirmed that first device is planned to include Wi-Fi connectivity for wireless Internet access, with the ability for users to transfer files wirelessly and share files between each other. Billboard also reports that other devices are planned for release under the Zune brand, including a portable video player. A rumored portable gaming device has not been confirmed.
Wikipedia
It appears that Microsoft may be making some hardware and software to compete with the iPod and Mp3 Market, and Wifi handheld communication market, that leaves gaps in the market for an xbox style handheld, and as sony are releasing a skype/yahoo/google messenger (which I think will probablyfail being £180 and soley for that purpouse of IM'ing... which I can't see the use of whilst on the move, and to call non-skype users you would have to have credit, it is just yet another thing to carry, and the concept design is bad ), that leaves the gap for MSN open; and then we have Windows CE on pal Top computers.... maybe a big range of Zune items is on the way, Portable personal deviced, PDAs, Mp3s, maybe Cell phones or even wifi devices... or all of them in one? Its ll pretty exciting, but lets hope they don't go the way that they did with creating their own JPEG format for Vista... and make the Zune Vista only, or make the music .zn files and make converters or something, which I would not be surprised at
I looked around the web for some rumours...
Certain reports have suggested that the Zune will carry the Xbox branding. These reports also suggest that there is a portable gaming system in the works, much like the Sony PSP. Analysts predict that Microsoft will debut a portable console in 2007/2008.This device is speculated to be released as part of the Zune initiative, J Allard, creator of the Xbox 360, is rumored to be overseeing development.
It will run Windows Mobile on a 400MHz DSP processor, contain a 30GB hard drive, and built-in WiFi.
According to tech blog VoIP Lowdown, the player will also have VoIP capabilities