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NewsRumor: ZunePhone on Tap for CES?

Will they or won't they? Rumors fly that Microsoft will roll out a Zune-based phone at CES

Cnet reports that Microsoft CEO Steve Ballmer will be using January's CES trade show to spread the good news about Windows 7. Ballmer is one of the keynote speakers, along with the CEOs of Ford and Sony, for the annual electronics extravaganza. The Windows 7 push is expected, but some observers think that Microsoft might have really big news in store for CES - perhaps, a Zune-based phone.

While Cnet's sources deny that a ZunePhone will be on tap for CES, it's a hard rumor to kill. Global Equities Research analyst Trip Chowdhry claimed recently, in a posting at Barron's Tech Trader Daily blog, that Microsoft would be rolling out a phone combining the features of the Zune and the Danger Sidekick handheld.

So, will early January see a new convergence device from the folks in Redmond, or just the expected emphasis on Windows 7, Xbox 360, and the like? Talk amongst yourselves, and we'll all find out in about three weeks.

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