In case you’re still holding your breath for a Zune Phone, you might also want to cut a flap in the back of your pants to let the monkeys fly out. It doesn’t look likely, folks. Microsoft CEO Steve Ballmer has said that the Zune Phone is a no-go as he feels that the market for portable media devices is slowly fading out and that he sees it being replaced by multi-purpose devices. Okay, Steve, no Zune with phone capabilities… but what about a phone with Zune capabilities? Apparently that’s more likely.

I just recently got a 120GB Zune. Do I wish it could make phone calls? Nah. I’m far too impressed with everything else it can do to care. I have a phone. And a Zune.

Do you agree with Ballmer? Do you thing portable media is on its way out?

[via]