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Microsoft to Compete with iPod

Microsoft is a computer mega giant, with some of the best software and OS in the world. However, when it comes to technological devices, the company doesn`t like to be the first one out in the field. In fact, it seems that Microsoft likes to wait to make its product the best in the business before allowing the masses to buy it. Thus the development of the X-box, and now the potential iPod competitor. Tired of being an also-ran in the digital music arena, software giant Microsoft is reportedly considering offering its own device. The company ignited the discussion with its December shift of its digital media software division and the MSN Music service to the Entertainment & Devices division, which experts agree is the likely umbrella group to make a push against the iPod.

Microsoft was noncommittal about a music player. As you may know, the recent reorganizations (both company-wide and within E&D) sought to bring more focus to Microsoft?s efforts in entertainment. But Microsoft is committed to innovate and invest in technologies, products and services that enhance the digital lifestyles of our customers." Analysts believe such a product would likely will center around Microsoft`s X-Box 360. X-Box sales, the brightest point in yesterday`s Microsoft`s earnings report, ensure future customers.

While challenging Apple is always sport with Microsoft, it`s not enough to go off on flights of fancy, The X-Box 360 is a perfect platform to launch a digital music play, according to Mike Goodman, an analyst following the game console market for Yankee Group. The X-Box is built from the ground up to be home entertainment. For example, with a multimedia port, the X-Box can play audio CDs, download content, even connect to the iPod. But hardware has never been Microsoft`s strong suite. Instead, it has distributed its software with hardware made by other vendors.