Back in November, a rumour broke that Microsoft would show off a prototype Zune phone at CES 2009. Codenamed Pink, the device is supposed to be the offspring of both the Zune and devices from its recent Danger Inc. acquisition.
But according to CNET sources, Microsoft will not show off the Pink at the trade show. Instead, it will focus much of its attention on the upcoming Windows 7.
On the mobile phone side, we could see some news from Microsoft about porting Zune services to its Windows Mobile phones. Rather than a Zune phone, future Windows Mobile devices would offer Zune capabilities.
Personally, I would rather see Microsoft working to breathe new life into the Windows Mobile operating system rather than trying to launch another mobile phone platform.