"After considerable buzz in the media about the rumor of a new Microsoft "iPod-killer" MP3 player coming out in time for the holiday shopping season, Microsoft confirmed that the company is working on a portable music player with an integrated digital music service. Details are still sketchy at this point, but we do know the device will include Wi-Fi connection for wireless Internet access and contain a hard drive. The device will be compatible with the Xbox 360, as well as PCs running Windows Media Center and mobile phones using Windows Mobile the operating system. To find out more, keep an eye on these two blogs, posted by Microsoft employees working on the Zune project: Zune Insider Blog and Madison and Pine. We’ll pass along more information as it becomes available. In the meantime, you might want to leave a spot for Zune on your holiday shopping list! "

This was part of my July Microsoft Mindshare Update Newsletter. Look like the powers in Redmond are gearing up to make this a VERY interesting Christmas shopping season.