It seems like everyone else is gunning for a converged device to dethrone (or at least pick up part of the market share from) the Apple iPhone and now the latest news is software giant Microsoft is ready to join the fray.

Calling it "Project Pink", the prospective handset aims to produce a phone that will extend Microsoft's reach of Windows Mobile operating system, as well as add some new software capabilities.

It makes sense too as Windows Mobile was one of the first to offer serious competition to Research In Motion's dominant Blackberry platform, but the iPhone's popularity has pushed Windows Mobile further down the popularity ladder.

While it's only speculation at this point in the game, insiders suspect the finished device to be "Zune-like" (meaning a rich music-playing feature set), 720p HD video output and at least a 5-megapixel camera.