The rumored Microsoft Zune Phone may be released sooner than later, and it will come loaded with Windows Mobile 7 as well as a 5.0-megapixel camera. Should Apple release a new iPhone (4G?) in June/July, it just might have some competition from Microsoft this time around.

…and some sort of subscription music service (can you spell Z-U-N-E?). if the quality of this alleged phone is anywhere near the excellent Zune HD, our interest is piqued.

[via Dvice]