Microsoft has confirmed the development of Zune - a portable media player brand. Billboard has the story.

Here's what we suspect based on the techie gadget rumor mill:

• Zune will hit the marketplace towards the end of 2006
• Wi-fi capability for wireless internet access
  
• Media sharing with Xbox 360, Windows Media Center PCs and Windows Mobile cell phones
• Hard-drive based player
• Video capabilities in the future. Music at the launch.
  

Microsoft has not announced a price for their new music and video player, designed to rival Apple's iPod.

Here's what Microsoft says:

"Today we confirmed a new music and entertainment project called Zune. Under the Zune brand, we will deliver a family of hardware and software products, the first of which will be available this year. We see a great opportunity to bring together technology and community to allow consumers to explore and discover music together."

Visit the funky viral ComingZune.com site to sign up for e-mail notifications from Microsoft.

Have you heard anything about the new Zune player and media system? Care to speculate? Share what you know by posting comments to this blog.

As soon as we learn more, we'll pass it on to you.