Strait out of the "you got to be kidding me" files. Microsoft is mulling over the idea of a Zune phone. They think the idea is "not unreasonable" according to Microsoft spokeswoman Mindy Mount in an article with Canada.com. Of course, MS CEO Steve Ballmer has stated that they would not be doing a Zune phone, however Sony once said it wouldn't redesign the PSP.

The Zune Phone. Wow, that's a scary concept. Poor functionality, intrusive DRM, and the BSOD now in your cell phone. Microsoft has been a little scared recently by the success of Apple's non-computer product lines. Though Microsoft has had its own share with the Xbox but Apple is still selling a lot more iPods than MS is selling 360s. Neither product being the best out there in their price range in my opinion. Unlike Apple, Microsoft seems to have built quite a track record of problems. If you remember my recent MP3 round up, I rated the Zune the worst player out of all the ones I looked at, including all major and a couple obscure brands. For a computer company, Apple entered the "lifestyle" market early and now Microsoft is just catching up, usually with poor imitations of what else is out there. Zune for example was supposed to be the iPod killer. I've yet to see anyone who actually owns a Zune. It's an inferior copy of the iPod Video. Windows Vista is an inferior copy of Mac OS X 10.4 with a few elements from Linux's Beryl 3D desktop mixed in. So what's next, an iPhone killer? Zune Phone if it ever happens will just be that, an inferior copy of something that already exists.

Without seeing the iPhone, I would say it's probably the most superior PDA currently on the market. It currently competes with RIM's hugely successful Blackberry. The cell phone market as it is is overcrowded. Walk into any cell phone store and there are literally dozens of different models to choose from, in prices ranging from "free" to almost $1000. You've got LG, Samsung, RIM, Sony, etc. Now Apple is on the bandwagon. Is there really room for yet another cell phone maker? I say no. It's a difficult market to break into and the competition is a lot hotter than Microsoft is used to. I'd say that's why the Zune has failed. Microsoft underestimated the market thinking it was just iPod, but the market is so swamped with competition, the Zune never broke through the glass ceiling.