Ready for even more rumors about Windows Mobile 7 and Microsoft's mysterious "Pink" smartphone project? Good, cause we've got a few -- and the first is potentially huge. ZDNet's Mary Jo Foley says her best understanding of "Pink" is now that it's a Microsoft-branded phone running a custom UI on top of Windows Mobile 7, developed by what's left of the Danger team and targeted at the Sidekick market. Yep, Microsoft-branded -- as in, the exact thing Microsoft has been denying for ages now. What's more, Redmond wouldn't be letting third parties use this new UI -- Pink would be manufactured only by Sharp or Motorola, who've made Sidekicks in the past. It all makes sense, even if it does feel a bit like MS is knifing its partners in the back -- companies like HTC and Samsung have been equally aggressive in layering their own UIs like TouchFLO 3D and TouchWiz on top of WinMo, but it's another thing entirely to compete against Microsoft itself, especially now that AdWeek says Microsoft's selected an agency to develop a Pink ad campaign. Yeah, things are starting to get a little wild -- we haven't even mentioned the open questions of whether the Zune HD is running Tegra because it's based on Windows Mobile 7 Chassis 1, or whether Pink will launch on Verizon, or whether Zune will appear on other phones, or... you get the idea. Hey Microsoft -- you want to clear any of this up by shipping some products?

Read - ZDNet
Read - AdWeek

We don't know exactly what's going on, but both Xbox Live and Zune Marketplace are apparently acting up right now -- we've gotten reports that the entire Zune user database is more or less MIA, while Xbox Live seems unable to process purchases reliably. If we had to guess, we'd say that Microsoft's free Thriller video giveaway is causing some pretty massive server strain, but that's just a shot in the dark. Keep us posted on how you're doing, and we'll let you know if we hear anything official.

[Thanks to everyone who sent this in]

Sure, we've been chummy with the Zune HD in the past, but we just took it for a quick spin on video so you can check out those smooth transitions for yourself. Unfortunately, the unit we were playing with had zero content loaded on it, but you can check out the slick unlock mechanism, swooping screen-change animations and a bit of pre-loaded Zune video on the gorgeous OLED screen. Plus we tossed together a few pics and a shot of the Tegra chip that's doing all the work into a gallery below. Video is after the break.

You can stop wondering what exactly is powering the new Zune HD. On the official Zune Insider podcast, host Matt Akers confirmed the rumors: yep, it's rocking a Tegra. No surprise, that announcement came with a heap of praise for NVIDIA's chip, so much so it's almost painful to listen. "So sick, so much better battery life, graphics acceleration. This thing is like a mini laptop in your hand, right, it's so awesome." We'll have to see about that for ourselves (in September, maybe?), but we are indeed encouraged by the news. Hear it for yourself just below.



[Thanks, Jon]

Ready for a double dose of Tegra newsbits? We've been wondering what's packed in the Zune HD for some time now, but apparently PC Perspective has had the answer since Computex and didn't realize the newsworthiness until now. According to the article, NVIDIA staffers told the site that its uber-powerful Tegra processor will be the heart and soul of Microsoft's revised PMP. There's been no official word from anyone, and for all we know it might've been some (possibly misinformed) employee mouthing off for kicks. If true, however, it'd be one helluva 'screw you' from Microsoft to Windows Mobile fans, who've been waiting over a year at this point to see some retail hardware running on NVIDIA's mobile platform. We've put in calls to both companies for some sort of statement, but we're not getting our hopes up.

In other news, a group of researchers from Georgia Tech and Savannah College of Art and Design are showing off some of CPU's impressive potential with an augmented reality game ARhrrrr. Using a Tegra-powered mobile dev kit, the game projects a 3D town based on a two-dimensional diagram where you tap the screen to shoot zombies, or lay Skittles in real life to serve as virtual bombs. We've seen similar implementations before, but we're admittedly quite infatuated with this one, and as a bonus, there's video of the demo after the break.

Read - Zune HD uses NVIDIA Tegra processor
Read - Augmented Environments Lab: ARhrrrr!

Microsoft is busy announcing a slew of upgrades to Xbox Live, and the biggest news so far is relaunch of the video service, now Zune-branded with 1080p instant-on streaming content in 18 countries. XBL is also now integrated with Facebook -- your Facebook account can be linked to your Gamertag, and games will support Facebook Connect for sharing content online. That's pretty huge -- but if that wasn't enough, you're also getting Twitter and Last.fm in the deal. Want more? Netflix users will now be able to browse the entire catalog instead of simply loading their queue, and Microsoft has also gotten its Party Watch system in order, so you'll be able to heckle videos with your online friends. Last but not least, there's now live TV streaming for UK and Ireland gamers, who'll get Premier League soccer live from Sky. All in all, a solid set of updates for XBL -- but we'll wait and see how that "1080p" video looks before we pronounce Blu-ray dead. PR blurb after the break.

Look, we fully understand that September 5th is a long ways out, but don't think for a second that Microsoft isn't inking every last detail of its Zune HD launch in stone. That said, Windows expert and all-around good guy Paul Thurrott has been "told" that this very player will ship exactly on the fifth day of the ninth month of this year. Needless to say, that jibes with Microsoft's official line ("this fall"), but sadly, we've no other information to go on at the moment. In other words, feel free to pencil this one in, but keep that eraser handy -- cool?

[Via Zune Boards, thanks Joel]

Sure, it was fun to have Ballmer run us through a little demo of the new Zune HD, but we'd be remiss in our duties if we didn't spend some time manhandling the device ourselves. We managed to track down the beast and toy with it a bit, and we must say... the thing kind of rocks. In your hand the Zune HD has a nice, solid feel, with good heft to it and a surprisingly thin profile. The OLED screen looks absolutely stunning -- even at severe viewing angles, colors were super bright, edges were crisp, and text looked beautiful. The UI is an extension of the existing Zune interface, but way tricked out in this version, with lots of flipping images, scaling text, smooth scrolling, and an extreme emphasis on simple visual navigation. While the OS isn't finished, we didn't notice a single hiccup while jumping through menus or playing back HD video. We'll definitely have more on this in the near future, but for now, you'll have to manage with this handful of images.

That's right kids -- Ballmer himself whipped out the newly minted Zune HD for us during D7 and showed off a few of its finer features... including its ability to play a Pixar movie on its gorgeous OLED screen. Also of note, Steve off-handedly mentioned that the device would be shipping in a month, though we can't confirm that that's accurate. Anyhow, these pictures say far more than a thousand words, so just hit the gallery.

Update: Microsoft just pinged to let us know that the Zune HD is still set for a Fall release, not next month.

A few quick impressions we took away:

• The device was a pre-production model, and Steve had to boot it up -- which can be seen in the shots below.
• Hardware was surprisingly thin.
• There's what appears to be a solitary hard button below the screen.
• Interface was basically the same Zune UI with touch navigation, but very colorful and pretty snappy.
• The OLED screen looked great.
• We'll obviously be badgering Microsoft in the coming months for a longer, closer look at the device, but at least it's not just a render anymore.

That's right folks, the Zune HD is real, and it's coming this Fall. Microsoft officially announced the next iteration in their Zune line today, making it less of a tripped out pipe dream, and more of a totally tubular reality. The specs, which look exactly like that leak we saw, go like this: 3.3-inch, 480 x 272 OLED capacitive touchscreen display, built-in HD Radio receiver, HD output (utilizing a new dock -- not on-board), and... not much more right now. Microsoft is doing away with the famed squircle in favor a full multitouch device, and they seemed to indicate that some new touch-friendly apps and games would be headed our way, though they were fairly mum when it came to details. The device will boast an IE-based, customized browser, but little else was said in the way of software.

Details are also scarce concerning storage capacities, CPU performance, and other crucial numbers, but it seems like they've got more in store come E3... and that's the next big piece of news. Zune integration is coming to the Xbox and Xbox Live, as the Zune marketplace will step in to replace the current Live video resources, expanding the library and offering all kinds of new perks, like Zune's first foray into international waters. According to the company, at E3 "attendees will see first-hand how Zune integrates into Xbox LIVE creating a game-changing entertainment experience" -- we're not entirely sure what the means right now, but it sounds sweet. Try to contain your excitement.

Update: Microsoft's just sent out a press release (after the break) and launched an official Zune HD page.

Update 2: We just got sent a picture of black Zune HD, now after the break, which we're told Microsoft is giving out to selected "Zune MVP" sites such as Inside the Circle and ZuneTracks. See it for yourself after the break.

Entelligence is a column by technology strategist and author Michael Gartenberg, a man whose desire for a delicious cup of coffee and a quality New York bagel is dwarfed only by his passion for tech. In these articles, he'll explore where our industry is and where it's going -- on both micro and macro levels -- with the unique wit and insight only he can provide.

A lot's been made of the new Zune commercial that Microsoft aired recently. If you have haven't seen it, take a look. Now don't get me wrong. I think there's a lot that Microsoft can do with Zune, but this ad doesn't quite do it for me. What's wrong? First, it took a shot at Apple that felt silly -- after all, most consumers don't spend $30,000 to fill up their iPod (how much did it cost to fill yours?). Even if that's the case, buying a Zune Pass won't fill up an iPod either. Second, it started to make a value play that's real, but stopped short of actually making it.

The ad was interesting as it begins the discussion of the value of the Zune Pass. That's important. The power of the Zune Pass lies at the core of the differentiation of their whole business model, subscription services vs. single song downloads. Microsoft needs to go further and explain how these two models can co-exist with each other. Up until now there were only two models for music, the free and ad supported stuff on radio, or music you bought or owned (or perhaps acquired elsewhere). Zune Pass and other similar services change all that. While consumers "rent" video content all the time from theaters, cable companies, Netflix etc, there's also a lot of other stuff sold on DVD. There's no reason for this to be binary -- rent or buy -- it's just never been applied to music and when it has, it's not been explained or marketed well at all.

Josh Topolsky and Paul Miller walk into a bar, but the bar is a recording studio.

The bartender, who is the recording engineer, asks, "Why the long faces?"

"Sigh," Paul says, and looks down at his feet. "Nothing but a buncha crummy phone rumors and probably fake slim PS3 pictures this week."

"It's hard to podcast when there's no exciting news to podcast about," says Josh, staring off into the distance.

The door slams open: it's Nilay Patel. "I know what'll cheer you guys up!" he says as he slams three stiff drinks down on the table. "Trashing AT&T about the Slingplayer app!"

Smiles creep over Josh and Paul's faces. They nod, the engineer hits the record button, and history is made: The Engadget Podcast, volume 146.

Update: We added a video feed of your charming hosts from the recording studio after the break. It's definitely an experiment at this stage, so let us know what you think!

Hosts: Joshua Topolsky, Nilay Patel, Paul Miller
Producer: Trent Wolbe
Song: Around the World

00:01:42 - Wild and slim PS3 redesign caught on camera?
00:17:20 - AT&T issues official statement on SlingPlayer's 3G blackout for iPhone
00:28:49 - Microsoft's latest ad: iTunes and the iPod are crazy expensive
00:37:26 - Microsoft "Pink" specs leak out: Tegra, Snapdragon, OMAP 3, oh my?
00:50:57 - Fuzzy math: Palm Pre to run about $470 full retail?
01:01:29 - Hold the phone: T-Mobile G1 v2 to really be the Samsung Bigfoot?
01:06:13 - Motorola's first Android phone to be the T-Mobile G1 v2?

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Sounding too good to be true, the cats at Teamxbox have posted a lengthy piece quoting multiple sources from Redmond and Santa Clara who anonymously spill the beans on what the Zune HD is and isn't. The "digital entertainment handheld," dubbed unanimously as product "xYz" by said sources to emphasize its purpose of bridging the Xbox and Zune platforms, is not a phone (that's Project Pink) but a converged "mashup" of devices like the Sony Mylo, PSP, and iPod touch. The emphasis of the device is not the hardware but the software, services, and entertainment experience if offers while remaining primarily "a portable game console and media player." It's said to link into Microsoft's Skybox computing services for mobiles and blur the lines between Xbox Live and the Zune and Sky Marketplaces. Even the Xbox 360's NXE interface will be making its way onto the new Microsoft handheld. As Teamxbox summarizes:

Buy a song, a movie or a TV show on your Xbox, play the content later on the handheld or the other way around. Play an Xbox Live Arcade game either on your Xbox or in this handheld.

At the moment, we have no way to authenticate any of this beyond what we've brought to the table already. Honestly, having had our hopes crushed by a tepid reaction to market trends from Microsoft in the past makes it difficult to believe all these seemingly fanboi fantasy claims of specs and convergence. However, if true, if Microsoft finally breaks free from the rigid silos of its own making and delivers an integrated living room, gaming, and portable media experience along with a stable Windows 7 computing environment... well, wait this just can't be happening.

[Via wmpoweruser and SlashGear]

Ready for some more delicious Zune / Windows Mobile rumors after today's June Zune letdown? Well buckle up -- the always-sharp Mary Jo Foley at ZDNet says she's got specs for Windows Mobile 7 Chassis 1, the heart of that rumored "Pink" smartphone, and they're pretty wild. According to the list, Chassis 1 phones will all have 3.5-inch or larger multitouch displays with ARM v6+ processors and OpenGL ES 2.0-compatible graphics hardware, 256MB or more of RAM and 1GB or more of storage, as well as at least a 3 megapixel camera, GPS, WiFi, Bluetooth, a compass, and accelerometer. Oh, and glory be -- a 3.5mm headphone jack is required. Here's the kicker, though: NVIDIA's Tegra platform is specifically listed as meeting the core CPU requirements, as well as TI's OMAP 3 platform and "Qualcomm 8k," which sounds to us like Snapdragon's QSD8xxx-series chips. If you've been following along, you know that all three of these (Tegra in particular) have been bandied about as potential Microsoft phone platforms, so it makes perfect sense to us that Microsoft's giving its hardware partners a choice of currently-available high-powered platforms for Chassis 1 -- especially since we've been hearing lots of whispers of hardware based on these chips in the works.

Here's the thing, though: we've also always been told that "Pink" is the codename for Zune software and services on Windows Mobile, so something tells us that Chassis 1 phones running Windows Mobile 7 will feature a strong dose of Zune flavoring -- a plan Steve Ballmer's repeatedly confirmed in the past year. So how do we think this all fits together? Well, we'll slightly revise our previous totally crazy, off-the-wall prediction: we think "Pink" is the codename for a new consumer-focused version of Windows Mobile that integrates Zune services, running not only on a touchscreen Zune HD, but on several third-party phones. Are we crazy? Yes, absolutely -- but you've got to admit the pieces are coming together.