James Delahunty
17 Jun 2006 16:24
According to a Reuters report on Friday, Microsoft is indeed developing a music and video device to compete with Apple's iPod as well as creating a music store to rival iTunes. The report cites information from sources familiar with the plans. According to these sources, Microsoft has held licensing discussions with major record labels and is already demonstrating the entertainment device.
Robbie Bach who headed development of the Xbox is apparently overseeing the project. Last December, Bach was promoted to president of Microsoft's entertainment and devices division. At that time he passed an e-mail to co-workers saying: "While I will continue to play an important role in the games area, I will spend more time thinking about our broader challenges and opportunities across the division."
Microsoft's content protection software is already in use on several music download sites and it is the key to offering subscription based music services. iTunes had stayed on top however, despite giants such as Yahoo backing the monthly subscription fee option. The failure so far of subscription services can be credited to consumers' reluctance to "rent" music.
Source:
Reuters