Crunchgear has released details today on a Zune phone from Microsoft. Apparently senior executives are in meetings today developing strategies and discussing the device.
The iPhone has fallen slightly flat in some areas such as its lack of 3G support and the fact its only available on Cingular so maybe Microsoft have spotted a niche worth pursuing.
The facts stated on Crunchgear indicate that Microsoft will be developing a smartphone running a custom version of the Zune software rather than Windows Mobile. The device will be able to sync with an Xbox 360 and stream video from the Xbox using WiFi. Apparently the Zune Phone might be available before Christmas.