Microsoft Working On Zune HD2, Paving The Way For A Microsoft Phone?

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Microsoft isn’t giving up on the Zune. It’s digging in deeper.

Mary Jo Foley at ZDNet reports Microsoft is working on a Zune HD2, which will be similar to an iPod Touch, acting as a companion device to Windows Phone 7 handsets which are coming out this year.

We’ve long argued that Android, and Palm should have iPod Touch like devices. A good no-contract device that connects to the web and runs applications could expand the market for an operating system.

Granted, Apple owns the personal music space. Microsoft hasn’t been able to crack it. But, if good games are developed for Windows Phone 7, and people like the operating system, then the Zune could be given a new lease on life.

Foley also notes that Microsoft has a new job listing for someone to help build, “the next generation of portable entertainment and communication devices.”

This could be step one in Microsoft making its own handsets. (We consider the Kin step negative one.)

Microsoft has traditionally been a software company, but selling mobile software is not as lucrative as selling desktop software

See Also: Microsoft Throws A Crazy Parade To Celebrate The Birth Of Windows Phone, Death Of iPhone

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