18:48 MSFT Microsoft confirms plan to take on Apple's iPod - Reuters (23.87 1.02)
Microsoft confirms plan to take on Apple's iPod -- Reuters & EngadgetAccording to Reuters, Microsoft (MSFT) said on Friday it plans to release a new music and entertainment player and accompanying software under the "Zune" brand this year, in a belated attempt to challenge the dominance of Apple Computer Inc.'s (AAPL) iPod player. Microsoft confirmed the plans for an entertainment device and software in a statement after touting those products to record companies in recent months. Music industry sources told Reuters earlier this month that Microsoft disclosed plans to be in the market before Christmas with a media player that will allow users to download videos and music wirelessly. It will also try to replicate Apple's simple approach to providing an integrated, seamless ecosystem for digital media is seen as the key to its success with iPod/iTunes, the sources said. Microsoft did not disclose pricing for the new media player or whether it would be willing to take losses on the hardware to make money from the sale of music, video and possibly games. This is the strategy it adopted with Xbox game console. Microsoft sources said Robbie Bach, president of Microsoft's entertainment and devices division, is working with J Allard, vice president of its Xbox team, on the digital media player/software project. Allard's involvement is seen as significant because he is one of the few executives at Microsoft with experience in launching a consumer electronic device from scratch with the X-Box gaming system. His involvement suggests that gaming might be part of the media player. From Engadget: The Zune media device will be drive-based, and have WiFi; The service and device will not be PlaysForSure compliant, meaning you will not be able to use your Zune player with Napster (NAPS) or Vongo, for example. This will be an entirely new system. Microsoft will continue to support and develop for their PlaysForSure initiative, but all things PlaysForSure are handled by two entirely separate division that will not have any crossover.
