Microsoft crushes Zune phone rumours

With Microsoft's new Windows Mobile 6.5 OS set to make its official bow on 11 May, rumours of that Zune Pink phone we first caught wind of last year h

Well, you can officially consider them crushed. The Big M has issued a categorical statement, telling Engadget that, "Microsoft is not going into the phone hardware business. Microsoft is not building a Zune-specific phone."

This comes after insiders at US network Verizon said they'd got word of plans for a Microsoft mobile to rival the iPhone. It was said to pack a full touchscreen, that slick new OS and feature Windows Marketplace. Just a shame that it's a load of bunkum.

Verizon has been at the centre of the gadget rumour pile up this week, after employees claimed they were set to get a new iPhone lite on launch this June.

Stay locked to for any more gadget gossip as we get it.