Today Microsoft finally admitted that they are working on a killer portable music and entertainment device named "Zune". They've already got a viral marketing website (who doesn't) launched at http://www.comingzune.com/.

The device is set to be launched this year. Zune will be the device, the service, and the brand. Unfortunately, this thing is going to be restrictive when it comes to playing digital music. This device will not be be "PlaysForSure compliant" meaning DRM'd files could be in trouble.

The folks behind the XBOX 360 are on board to see the Zune project through. This is good news. It's likely we'll see tight integration with the Zune and the XBOX 360. They'll likely talk wirelessly.