No direct Zune Phone, but oh the possibilities!

Steve Ballmer comments on potential Zune phone - Engadget

That picture made the idea a good one to me. While my T-Mobile MDA is more useful than I could imagine, the Zune form factor would be much better suited to the task. Even the buttons would be better for gaming.

Maybe we'll get some franken Xbox-Zune-Phone thing. That would be sweet.