These rumors aren’t exactly the most substantiated we’ve ever seen, but to be honest, I’d report if a bird flew in my window today just to get the Apple taste out of my mouth. What’s being said is that Microsoft is going to double down on Zune with a Windows Phone 7-esque update. Whether there’d be new hardware is anyone’s guess. Why not?
It’d make sense: several of the apps and improvements we’ve been seeing trickling out of WP7 development would work great on a Zune, though they might have to be slightly altered. Of course, Microsoft doesn’t always do what makes sense.
If they did it, they’d have to to it fast. The WP7 momentum will carry a couple months for other devices, and if they’re smart, they’ll aim for that. But if (as the rumors suggest) they’re looking at sometime in 2011, I’m afraid they’re going to have a lot more competition.