The Zune Phone is something that exists, but does not really, at least that is what the associates at Microsoft would have the public believe.  According to a media leak even larger than the one that resulted in forehand knowledge of the spherical Surface Computer, Microsoft has had high level executive meetings to kick start a project that would see Zune cell phones rolling off Microsoft manufacturing plants in the near future.

According to representatives of Microsoft the story is not true, since they are focusing on software development for their hardware partners as opposed to direct hardware development.  According to the same leak, an overhaul is planned on the Windows 7 Mobile system and if this is true it would represent the first mobile software overhaul that Microsoft has done in about three years.  Windows 7 is already confirmed as being Multitouch compatible and for this reason it perhaps makes some sense that Windows 7 Mobile would bring a Zune cell phone to the market with it.

Ultimately, believing Microsoft’s spiel about not having plans for a Zune phone is somewhat suspect, considering the company’s takeover of Danger.  Danger is a company that did produce software for media and messaging, both of which are expected to be big parts of the Windows 7 Mobile operating system when it is released.  On the other hand, Danger is also a company that was responsible for creating hardware to go along with their software and for that reason many are sceptical of Microsoft when they say they have no plans for Zune cell phone development.