Ever since Microsoft confirmed that new Zune hardware would be landing in 2009, the web's been abuzz with speculation on just what the device may entail. Will it be merely a touched-up Zune, will it be a handheld games console, or perhaps a Zune-branded phone?
Well, the latest information to come from "well-placed sources" suggests that the device will in fact be a Digital Entertainment Handheld. According to reports at teamxbox.com, sources from within Redmond have confirmed that such a device is in its final design stages, and is internally codenamed "xYz".
The clever little codename suggests that the handheld is something of a bridge between Microsoft's existing devices - the Xbox and the Zune - and has been described as being "unlike anything on the market today".
So where does that leave us? Well, speculation is rife, but we're assuming that the handheld - perhaps the ZuneHD pictured last month - will slot in to the mish-mash of services that Microsoft hopes will one day come together to create the leading unified entertainment experience: Live Anywhere. Looking back at development in recent years, it isn't a stretch of the imagination to assume that the handheld could bring together Zune marketplace for music, Xbox Live marketplace for videos and perhaps even Xbox Live Arcade for gaming.
We're reluctant to heed the words of so-called "well-placed sources", but with so much conjecture and hype surrounding an unannounced device, can a Microsoft handheld ever live up to expectations? Here's hoping we'll find out at next month's E3.
