Paul Thurrott write on his WindowsITPro column:
After a series of vague statements last week by Microsoft officials at the Consumer Electronics Show (CES), the software giant found itself at the center of yet another controversy: It was allegedly killing its Zune hardware devices, conceding defeat to the iPod, and moving the Zune software to other devices, like smart phones and the Xbox.
It’s not true, Microsoft says. Yes, the company has plans to expand the Zune platform from the PC, Web, and Zune devices to other portable devices, including smart phones, and to the Xbox 360. But it is not exiting the Zune hardware business, contrary to rumors.
"We are going to be in the hardware business going forward," Microsoft Zune marketing director Adam Sohn said.
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There’s a comment on Paul’s article at the bottom about "not wanting the wireless capability". I really have to disagree with this and I think this is one of the single most short-sighted comments I’ve read in a long time. The WiFi function in the Zune is absolutely CRITICAL to Zune’s success and just because you don’t use it today doesn’t mean that it doesn’t mean big things ithe future. Here’s a few scenarios that the Wifi component could be extremely exciting in – but we just don’t have the software developed yet for it:
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Wireless sharing with Xbox 360s that are hooked up to sound systems
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Wireless file transfer to laptop PCs on Wifi networks
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Wireless broadcasting from one device to 4 other Zunes or laptop users (like a DJ)
And my favorite: Imagine if DRM was no longer used. All of a sudden, the DRM encryption used for music sharing from device to device would no longer be necessary. Oh wait a minute: Apple just declared that they were going to end the usage of DRM on the iTunes Music Store. Hmmm…
Lots of opportunity for the Zune here… and all because of the Wifi adapter that it has.
kurtsh
Kurt Shintaku's Blog 
