After Apple's iPhone is it time for Microsoft's Zune phone ?

After iPhone's launch by Apple will there be a Zune phone by Microsoft? Well there are rumors in the blogosphere stating that Microsoft will release the Microsoft Zune Phone. If the rumor is true, then be ready for the ultimate showdown between Microsoft and Apple.

Connectivity is the major concern of the device. It is said that it will be able to sync with the Xbox 360 and stream video from the system to the phone via a wireless data connection.

The Zune phone will be a smartphone and will have an interface similar to the music player. It will be able to synchronize with the Xbox 360. The handset is set to drop near December 2007. This would be pivotal in Microsoft’s proliferation of its media ambitions.

Not only does it already have millions of 360s in homes capable of downloading movies, it’d be able to distribute those videos directly to its phones.