Gadget bra Gizmodo reports that the final name of the Microsoft device code-named the Argo will be Zune. According to their tipster this picture shows the final design for the device. The tipster also reports that there are no game menus to be found on the Zune, making some speculate that perhaps that is something that will be added in a later interation.

Gizmodo has a few more details over on their site and promises to deliver the logo for the device and some UI shots later today.

Man, I had worked up this whole theory about the Zune and its game-playing capabilities. Here's my idea. I thought it would play Live Arcade games, as in the full deal not the ports. Of course that means it would have to have a larger than 50 GB harddrive and support XNA, but no worries, Microsoft is rich. My theory was that 360 gamers would be able to just slap their already purchased Live titles on the Zune and play them on the go. Clever, no?
If they end up doing that, remember it was totally my idea. Brian Crecente

Microsoft Argo's Final Name The Zune [Gizmodo]

Rumors abound as Microsoft looks to enter the handheld market as early as this Christmas. Will it be a portable Xbox (aka Xboy)? Most likely, no, as Bloomberg makes reference to music and movies and not so much games. We're still predicting some sort of Live-functionality, with on-the-go versions of Live Arcade titles in the mix.

We've also heard rumblings that Nintendo's Gamecube redesign, better known as the Wii, could ship as early as September. Retails models are already in production, but Nintendo is silent. We continue to hold our breath for the slightest Iwata whisper.

Speaking of Nintendo, they were kind enough to take advantage of the PR opportunities of George Dubya's 60th birthday by setting him up with a Nintendo DS and a copy of Brain Age. I'd really like to see how I stack up against the prez in Calculations x 100.

Sony stirred up more ire from the politically correct stormtroopers with their Dutch advertising campaign for the ceramic white PSP. Not only did the internet give Sony Europe what for, but so did the NAACP and the vocal California state assembly speaker Leland Yee. Also see Kotaku's Florian give knee-jerk reactionary types the business!

Just so you're up to speed on all your rumor-mongering, there was a minor hubbub at the end of the week as a mysterious Apple logo appeared on the official PlayStation 3 site. Sony says the wild and crazy speculation is unfounded, that the quick blink of Apple goodness was just an error. Nothing to see here, folks, move along.

Finally, Kotaku is giving away a ton of free stuff all month long. All you need is commenting priveleges and a sharp wit. Keep your eyes peeled for your opportunity to compete for tons of schwag.

While the wire-service story doesn't quote a source, they report that the music and video player from Msoft is set to come out this Christmas. Instead the story is based on "people briefed on Redmond, Washington-based Microsoft's plans."

More interesting is their report that J Allard is overseeing development of the device and that Robbie Bach is supervising.

No mention, in the story, if the device will have any gaming features.

Microsoft's device will be able to connect to the Internet and other devices using the wireless fidelity, or Wi-Fi, standard, which iTunes doesn't have, the people said.

Microsoft is also promising the screen will have a better quality picture than the iPod, according to the people, who saw the slideshow Microsoft is using to promote
the device.

The music and TV companies are interested in working with Microsoft in order to blunt Apple's power in the market, according to people close to the media
companies.

I spoke with Microsoft shortly after the story hit the wires and got a big fat no comment. It seems obvious that some sort of music, video player is on the way. The real question, it seems, is if it will be the fabled Xboy. Brian Crecente

Screw Peter Moore and his Xboy, this is the XMan. This portable Xbox comes with a built in LCD, runs on a case of batteries and looks to be the size of a manhole cover. Brian Crecente

Portable Xbox [Portable Systems, via Digg]

The report says the device will likely be similar to the Playstation Portable and sport multimedia playback capabilities.

Hit the jump for the full press release.

May 30, 2006 (Dallas, TX) - New research from The Diffusion Group suggests that Microsoft will likely leverage its Xbox franchise to enter the portable game console (PGC) market in late 2007 or early 2008. According to TDG's latest report, On the Future of Portable Game Consoles: Analysis & Forecasts, Microsoft is expected to embed a portable multimedia player in a handheld gaming platform similar in many respects to Sony's PSP.

"Microsoft has been waiting on the sidelines until its gaming console and software business reached sustainability, all the while watching closely how Nintendo and consumers in general would respond to Sony's PSP," said Thomas Wolf, a portable media analyst and co-author of TDG's latest report. "With global PGC revenues expected to reach $3 billion annually by 2008, and with only Sony and Nintendo active in the PGC space, Microsoft has before it an incredible opportunity. It has a critical brand presence in the console space, the breadth and depth of gaming titles, and the marketing clout necessary to enter this space and win decent market share."

Microsoft has been evaluating two options regarding its portable gaming strategy: licensing a version of its Xbox OS for others to build portable hardware designs upon, or introducing its own branded PGC. "While licensing the software is consistent with Microsoft's larger strategy, and no doubt Microsoft has endured many failures in regard to hardware plays, the success of the Xbox presents Microsoft with a unique opportunity," said Michael Greeson, CEO of The Diffusion Group and co-author of the report. "Microsoft owns an established and highly-regarded hardware brand, meaning that they can enter the PGC market from a position of strength, a privilege not enjoyed by any other player except those already active in the PGC space."

While I can see why Msoft would want to get into such a profitable market, I hope they have the common sense not to. All I can say is remember the Schlieffen plan. I asked Msoft about and it landed me a "We are not commenting on rumors and speculation" yadayadayada. Brian Crecente

Microsoft's Portable Game Plans: Report From the Diffusion Group [Gaming]