The Microsoft Zune portable media player has just been released and Microsoft is already working hard on some updates.
Soon a new firmware will enable wireless sharing of user-created video content.
But that's not everything, Microsoft is also working on a Zune with phone capabilities:
Ballmer also hinted that a Zune with integrated phone capabilities would also be released down the road. No other details were provided, but rest assured that Microsoft will be going head to head with the long-rumored iPhone.