Microsoft portable dubbed "Zune," won't game?

Source: Tech blogs Engadget and Gizmondo citing a source is a source of course, of course .

The official story: See below.

What we heard: The work week got off to a sizzling start on Monday when a report from the Seattle Times stated that Microsoft's rumored portable, sometimes referred to as the xPod or Xboy because of its music and gaming potential, was in fact a line of portables. Citing a source, the author of the article said that the "Argo" would feature WiFi capability and compete in the same market with the DS and PSP.

Microsoft obviously would not cop to the news, and declined to comment entirely.

But that wasn't all that sprang forth from the wealth of knowledge from sources. Engadget talked to its spies and found out that Argo was the name of the project, which is under the watchful eye of none other than J Allard, the former face of the Xbox. The sources also revealed that the gadget would be dubbed "Zune."

However, even though Allard is overseeing the project, the Zune looks like it will be mostly music-centric--for now, at least. The WiFi capability is in place primarily for wireless song transfers, not multiplayer gaming. Gizmondo states that there will be some gaming however, just not anything like an on-the-go Xbox.

Of course even the iPod, which is rumored to be the target of Zune, has some mini-games, such as a Breakout rip-off. The likely power of the Zunes' games? Think something like Palm-OS-based diversions, or even simple Xbox Live Arcade games.

Of course the Zune could also just be the first step towards something bigger. People are already speculating about Xbox 360 integration with the device, beginning with streaming audio, like the iPod currently does. But add a few buttons, a thumbstick, and a little more horsepower, and the Zune could soon be singing gamers' tunes.

Bogus or not bogus?: Not bogus that Microsoft's handheld is named Zune, and not bogus that it won't seriously game in its first incarnation.