Microsoft to launch 'iPod killer' by Christmas?

James Delahunty
6 Jul 2006 16:45

Sources close to Microsoft have told Reuters that the company will offer a digital audio and video player with wireless capabilities as soon as Christmas. One source said that the device will allow users to download music and video content "over the air", giving it at least one advantage over Apple's iPod players.
Microsoft is also apparently showing off new media software. "They're proposing an iTunes model approach," one source said. "They're now interested in controlling the whole vertical stack of technology from the device to the service to the software." He added that record companies are expecting prototypes to test in the coming weeks.

Launching an attempt by Christmas to dethrone Apple's iPod, which currently has over half the MP3 player market in the U.S. (NPD research), is vital according to analysts. Microsoft will need to copy several aspects of Apple's approach to be successful. "The success of Apple is that they've been able to create a very seamless experience", said Mike McGuire, analyst at Gartner Research. "That ability to control the hardware and software has given them an edge."
Robbie Bach, president of Microsoft's Entertainment & Devices division is reportedly working with J. Allard, VP of Microsoft's Xbox team on the unnamed digital media software/player project. The sources claim that Microsoft is preparing to throw significant marketing dollars behind the launch.

Source:
Reuters

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