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Microsoft is probably hoping for corporate customers, who might be turned off by an Xbox phone.

To me thats like saying corporate customers would be turned off by the iPhone. I get where you are coming from, but I think it could be handled in a way that would make both consumers/professionals love the phone. Apple is clearly the example to follow. Microsoft has leverage with the 360 its just crazy to me they don't use it.

I'm assuming an Xbox phone would be more than just the name, so the design, UI, accessories, and marketing would all be Xbox-y and targeted to gamers to some degree.

An Xbox phone that looked like Windows Phone 7 would be no big deal for business, but an Xbox phone that looks like it is part of a gun from HALO probably would be a problem.

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