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May 15, 2009 6:12 PM PDT

Zune-Xbox rumors map to Microsoft organization

by Matt Rosoff
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David Carnoy over at Crave has already covered the latest crop of Zune rumors first published by TeamXbox. To summarize: the next portable device from Microsoft could combine a digital media player (like Zune) and a portable gaming device (like Sony's PSP or Nintendo's DS lineup) in a single device with a high-def touch screen. TeamXbox goes a little dreamy with the speculation, suggesting that this gadget might have built-in WiMax and connectivity to the MyPhone data storage and synchronization services that Microsoft announced for Windows Mobile 6.5.

T3's rendering of a Zune-Xbox portable gaming console.

The company isn't talking, but I can easily believe that Microsoft's going to release some sort of combination Xbox-Zune device. Here's why.

Some time in 2007, J Allard--who headed the Xbox business as it was starting up and is credited with much of Microsoft's success beating back Sony in the console space--moved into a new job and disappeared from public view. His job duties include coordinating product development across the whole Entertainment & Devices group (that's Xbox, Zune, Windows Mobile, and Windows Media Center, among other things), and overseeing incubation of new products. I can't imagine he's parked in some pasture somewhere--the guy's too smart and well-regarded at Microsoft, and has actual direct reports. I've heard rumors his team was looking into portable gaming devices but abandoned their plans. I've heard rumors that his team was designing the interface for the "Zune phone." But publicly--the cone of silence has been in place.

Flash-forward a couple years. Beginning in late 2008, Microsoft split the Zune team apart into two: hardware and software-plus-services. (CNET's Ina Fried broke the news in February.) As the TeamXbox article suggests, and Microsoft's rhetoric constantly reminds the world, the company sees software-plus-services as its future. The manager in charge of the Zune software-plus-services is Craig Eisler, and his official duties include creating a new platform for enabling the playback of digital media across Windows, Windows Mobile, and Xbox.

There's the key: Microsoft is taking the Zune software and services and making them the delivery and playback mechanism for digital media across all its products. I wrote about this before, in the context of the Zune Marketplace moving to the Xbox.

But why not integrate in the other direction as well--take gaming to the Zune?

Here's what I think happened. Allard's group has been incubating. Now, the incubation period is done, and the latest reorganization is getting teams in place to churn out actual, sellable products. The first such product would be the Zune HD/xYz/Xbox-Zune device we're hearing about now, which could come out as early as fall 2009. The second such product would be the "Zune phone," manufactured by third parties (probably HTC and LG) and featuring design specs similar to the Zune HD. That will probably have to wait for Windows Mobile 7, which means it won't be out until next year.

Regarding the WiMax speculation--it's not that outlandish. Samsung announced a WiMax touchscreen device in March. TeamXbox notes that the only WiMax phone available now is made by HTC--and guess who's responsbile for manufacturing more than 80 percent of the Windows Mobile phones shipped so far?

Of course, I'm compelled to note that we've heard this all before...more than two years ago, in fact, another publication wrote about a well-placed source who swore Microsoft would announce a WiMax-enabled Zune phone in March 2007. Didn't happen.

Matt Rosoff is an analyst with Directions on Microsoft, where he covers Microsoft's consumer products and corporate news. He's written about the technology industry since 1995, and reviewed the first Rio MP3 player for CNET.com in 1998. He is a member of the CNET Blog Network. Disclosure. You can follow Matt on Twitter @mattrosoff.
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by Hellcat May 15, 2009 7:11 PM PDT
I've been saying it for a while myself. I actually see another Xbox console coming out that works with the Xbox mobile going through WiMax to support either a mobile version of Xbox live or work with Xbox live (can you imagine playing true online games on a portable game machine). So if you're playing a game on your regular Xbox you can play a smaller version of that game on your mobile Xbox. Then also on the new Xbox they can support WiMax (or make the phone also a portable hub) so say you go on vacation you can use WiMax to easily get on your Xbox way in a mobile home, grandmas house that may not have broadband (or its only got one connection to a computer that people are using and don't want to give up) or hotel room.
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by dominiej May 16, 2009 1:14 AM PDT
ugh... *shakes head* - the teamxbox article is saying the ZuneHD and the Xbox Portable device is going to be ONE IN THE SAME...

I can't believe the number of idiot bloggers are running around with this T3 image hyping up a Xbox-like device when they didn't even read the GD article...
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by Kwasiowusu May 16, 2009 8:23 AM PDT
Teamxbox said nothing of the kind. Not to mention there is a fair bit of speculation in the Teamxbox article, which was made by putting together all the various pieces the guy has gotten from various sources.
xYz might just be Zune HD, or it just might share similar specs but also include a gaming interface like the Xbox controller (i.e. sticks and buttons).
We could end up with 3 devices:
1. Pink (Windows Mobile /Danger third party phones like the one Microsoft is developping with Verizon)
2. Zune HD
3. xYz (Half Xbox + Half Zune)
by iBuzz May 16, 2009 11:40 AM PDT
xYz?

As in eXamine Your Zipper?

Good name for a device that you carry around in your pocket.
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by Kwasiowusu May 16, 2009 7:37 PM PDT
@ iBuzz :"xYz?
As in eXamine Your Zipper?"

Naaaah
xYz as in get your mind out of the gutter..for the first time in your life.

@ iBuzz "Good name for a device that you carry around in your pocket"

They said the same thing about the Wii too.
Not to mention xYz is simply a rumored code name, not the actual name.
What kind of a dumb name is iPod ..excuse me iBuzz ..anyways?
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by Hellcat May 16, 2009 10:13 PM PDT
A lot of products have bad names. Wii is one of the worse though I think, I liked the name before it, the revolution. ipod is pretty bad, so is iphone, and all the i stuff that apple has come out with. If they came out with a game console what would they call it the iConsole or iGame? The Palm Pre even though I think its going to be a great phone has a bad name.

I think it would be smart for them to come out with a handheld Xbox and by now they can make it as powerful as the Xbox 1. Zune phone would be a good idea, but should have come out a year (or more) ago. With the Pre, iPhone 3, the numerous Android phones and the Storm 2, a Zune phone is going to have to be pretty special. I'm hoping MS can pull it off. I think Windows Mobile 7 will be the thing. They know by now what they have to do. They have to do what we hope Windows 7 will do after Vista. I love Windows 7 so Windows Mobile 7 should hopefully hit the spot.
by inaron101 May 17, 2009 6:21 AM PDT
zune will not sync the software will just not work i have tried everything nothing seems to work help
ron
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by xyberviri May 17, 2009 10:19 AM PDT
So long as they dont tack it on to a specific service provider im in.

I wish the T3 team that created that mock design didn't go with what ever choice of acouple others that put a guide button in the middle of the DPad that just doesn't make sense, because if its a sticker its going to come off, and if its a button its going to cause allot of useability issues. "hypothetically speaking" of course.
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by tipoo_ June 3, 2009 12:16 PM PDT
I would be all for a Zune/Xbox microsoft gaming device. Both Sony and Nintendo are doing nothing but minor refreshes for their respective handheld consoles, I want something NEW!
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About Digital Noise: Music and Tech

Matt Rosoff is an analyst with Directions on Microsoft, where he covers Microsoft's consumer products and corporate news. He's written about the technology industry since 1995 and reviewed the first Rio MP3 player for CNET.com in 1998. He's also a bass guitarist and an avid collector (and digitizer) of LP records. DISCLAIMER: This blog contains the personal opinions of the author and does not necessarily represent the opinions of his employers or of CNET Networks. As an IT industry analyst, the author occasionally agrees to nondisclosure agreements from Microsoft or other companies, and he will not violate the terms of such agreements on this blog.

He is a member of the CNET Blog Network and is not an employee of CNET.

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