Microsoft is planning a phone, yes, and it has been given the code-name “Pink.” Sounds very interesting. Here’s what CNBC’s Jim Goldman says, “I’m hearing from a good source that Microsoft is ready to give a major facelift to the company’s Zune music player that could mean its evolution into a new smart phone from the company.” With Microsoft owning the maker of SideKick, the technology is not only possible but could become a game-changer in the cellphone market. The Microsoft-Danger baby could be revealed as early as January 2009 at CES.

The Zune phone is the logical result of the dire future of Microsoft’s Windows Mobile OS for cellphones. Hope this works out. I like the Zune and think it’s a decent alternative to the iPod. If they could replicate their success in the media player market on the handset market, it definitely won’t be the end of the world for Microsoft, but then no one really expects a whole lot of success from Microsoft.