Now this is very sad news. I was reading Jason Tsang's blog at lunch today and read this from a post he found in a post by David Bono, a Microsoft employee in the Microsoft newsgroup microsoft.public.windows.mediacenter.portable, that the PMC (Portable Media Center) platform has met its demise and will no longer be licensed. This comes as no surprise since Microsoft is pimping its new portable media platform the Zune, which is based on the PMC version 2.0 OS.

Its a sad day, but we kinda new it when we didn't see all the new PMC units shown off at CES 2006 (LG and Tatung) except for the Toshiba Gigabeat(which the Zune is based on) come to fruition as well as Creatives early bail after the original Zen PMC (which I have two of). This also points more to the dedication to the Zune platform and hopes for a thinner, smaller unit with more storage and functions in version 2.0 of Zune.
Here is the full post from the newsgroup:
Microsoft is no longer licensing the PMC software. Here is an announcement that was sent out last year to our PMC partners:
In early 2006, Microsoft released the second version of Windows Mobile for Portable Media Centers to our partners. The second version of the Portable Media Center software enhanced the end user experience and enabled partners to build smaller, less expensive and more competitive devices.
As part of the ongoing review of our product investments, we have decided to take what we have learned from our investments in Portable Media Center and focus our product and marketing resources on building media experiences on connected Windows Mobile powered devices.
With the re-investment of resources in media experiences on connected Windows Mobile powered devices, Portable Media Center 2.0 is the last version of our Portable Media Center software under the Windows Mobile brand. We do not plan any future Portable Media Center software upgrades or marketing activities.
Thank you for all your support- Microsoft is proud of its work, the work of its partners and the devices and services delivered as a result of those relationships. We will continue to work with existing Portable Media Centers licensees to ensure that devices they are developing come to market.