Robbie Bach, MICROSOFT ENTERTAINMENT & DEVICES DIVISION PRESIDENT: "We ship lots of 3G phones already on Windows Mobile. ... We will outsell the iPhone. We will outsell the BlackBerry."

You won't hear the words "Zune" and "phone" uttered in any proximity to one another by Microsoft's Robbie Bach any time soon.

Bach, president of Microsoft's entertainment and devices division, runs the company's hypercompetitive, consumer-oriented businesses. That includes the Zune music player, which competes against Apple's iPod, and the Xbox 360 game console, which rivals the Sony PlayStation and Nintendo Wii.

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