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?

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With all the competition from the iPhone 3G and Android, did you know that – according to Steve Balmer’s keynote at CES - Windows Mobile still sold 20 million handsets last year? It’s true! Now my theory that Windows Mobile will rebound isn’t so far fetched! Especially considering that sexy new HTC lineup for 2009 that was just leaked. Lots of potential there!

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