Report: Microsoft readying Apple iPod+iTunes rival

“Microsoft is laying the groundwork to compete against Apple Computer Inc.’s iPod digital entertainment device and iTunes service, sources familiar with the discussions and plans said on Friday,” Reuters reports.

“Microsoft has held licensing discussions with the music industry to create its own music service,” Reuters reports. The Redmond, Washington-based developer of software that runs most of the world’s PCs is also demonstrating an entertainment device that plays videos and music, the sources said.”

Full article here.
So, they’ve lost the urge to work with MTV already? Whatever. The one constant in every failed iPod- and/or iTunes “killer” is Microsoft. So, once again, we predict an Origmai-like success story. Perhaps due to excessive floundering, they don’t seem to grasp the obvious: too many iPods already. It’s over and it’s been over for a long time now. Microsoft’s only hope would be an attempt to illegally leverage the good ol’ Windows monopoly once again and even that would have a tough time, if by some miracle they were even allowed to do it for longer than 5 minutes. Microsoft should just calm down, towel off, decide it’s okay not to own every single market on earth, and, oh, we don’t know… how ’bout concentrating on finally shipping Windows Vista or something?

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Related articles:
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U.S. looks to extend oversight of Microsoft business practices due to antitrust settlement lapses – May 14, 2006

More blood on Apple iPod’s Click Wheel: iRiver gives up on digital media player market – May 23, 2006
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More blood on Apple iPod’s Click Wheel: Olympus halts production of portable digital music players – November 09, 2005
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39 Comments

  1. reading MDN’s take, it’s eerily similar to the situation Apple finds themselves in with regards to operating systems.

    While doubtful, it is within the realm of possibility that MS can create a device/service universe that is better than the iPod/iTunes merely because the iPod/iTunes universe is not perfect.

    Apple needs to learn not from their mistakes, but from MS’s mistakes and not get complacent in their illustrious market share. Give competition a reason to not compete…because it would be futile going up such a superior product.

    All I’m saying is that Apple shouldn’t fall into the complacency MS did in the late 90’s which is NOW starting to bite them in the a$$.

  2. Well I admit it, I still don’t own an iPod! I got 20gig one for the wife some time back & last year she tried to surprise me with one, but when MacMall called to confirm the order, I cancelled it. Not because I don’t want one, I do, I’m just waiting for a wireless one with maybe an iSight attachment. I talk to me folks in the UK on my laptop with one & it beats the land line, anyday. I know, I could be waiting years, but the story hear is, it will still always be an Apple one. And, even if MS did come out with what I wanted & had a whole bunch of extra’s, as long as their name is attached to it, you couldn’t even give me one for free. So there you go, add that $400 – $500 dollar’s on whatever financial quarter it’s going to be.

  3. I bet this M$ is talking to the record companies so they can come out with a portible XBox (like the PSP) and have a music service to go along with it, probably movies too. It’ll be a bigger competitor for Sony than for Apple.

    MDN Magic Word: faith
    As in: I have faith that this too will fail.

  4. MDN: “… how ’bout concentrating on finally shipping Windows Vista or something?”

    On the other hand, how ’bout not shipping Windows – ever.

    It dawns on me that maybe the reason MS keeps trying to “kill” the iPod is because they see the end in sight for any really new Windows versions. Maybe VISTA is the swan song for Windows.

    On the other hand, maybe I should wake up and smell the coffee – yeah, coffee, that’s what I need. Well, I’m off to Peete’s web site to order some fresh coffee. Have a good day everybody.

  5. “It’s over and it’s been over for a long time now.”

    Yeah and so is the OS war. Oh wait, but you said that war isn’t over. So I guess this war isn’t over yet either.

    You’re too biased MDN, you need to step back sometimes and look at what you’re saying.

  6. It’s the reason why I don’t think highly of any of MS solutions. It seems that they are disorganized and the right hand doesn’t know what the left hand is doing. How many concepts of iPod killers does a company need? Pick one that is the best, put your resources behind it and create something that is truly competitive. MS is just throwing boogers on the wall and see which one will stick and the consumers are left with myriads of failed products. Heck, they don’t even wait until version 3.0 before unveiling the next concept.

  7. I feel sorry for MS. They are cought between a rock and a hard place. the rock being iPod+iTunes, the hard place being unable to come out with a great portable movie player. So while MS tries to recreate the iPod, Apple moves on to the next big thing.

  8. M$ will dominate in music download abilities with this new service and player.

    That is, M$ will quickly catapult to the number 2 position behind iTunes/iPod, quickly stomping out the failed attempts by Real, Napster, Sony and others trying to gain ground on Apple.

    However, M$’s music downloads will do what Apple’s combo does not – allows their format to play on other devices outside of just their own M$ “iPod.”

    The service will also allow for monthly music/movie rental fees.

    Apple won’t be taken out as #1, but momentum is huge, and as M$ takes the #2 spot behind iTunes/iPod, it could gain that “momentum with choice” game, having sales kids across the country say “With M$, you can buy their device, but if you want to buy a different player that works too, and still works with the M$ music/movie store. Apple’s solution does not allow for choice.”

    This is the same tired approach that exists right now, but does not have the financial or brand backing that M$ will deliver.

    Apple’s mistake will be to feel the need to “counter” when it should simply continue to pump out the “next great thing.” I believe with Steve at the healm they will do just that.

    ~Steven

  9. Everyone keeps forgetting that there are *two* M$ weapons:
    1. Illegally tying to the OS – yeah, I know, This has been repeated a lot already, but keep it in mind.
    And
    2. M$ will sell the hardware at a big loss to undercut Apple’s price and lead. How many *years* have they been essentially giving away XBoxes just to ‘buy’ market share?

    Put these two together and Apple should be worried. Quality means crap to the average US consumer. They want cheap and convenient with loads of fat and sugar – not real content or quality…

    And M$ will try to be the Walmart of mPod and mTunes. And the US sheep will fall for it.

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