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Microsoft is about to Fight iPod…

Posted by Parth Barot on July 7, 2006

Microsoft’s interest in making its own hand-held music and video player, disclosed by entertainment industry executives this week, indicates that its old way of doing things is not working in its battle against Apple Computer’s iPod.

In the PC market, its bread and butter, Microsoft has depended on hundreds of large and small computer makers that have built desktop and laptop computers running its Windows operating system.

But in some areas, Microsoft has been moving toward a go-it-alone strategy. The models here are Apple Computer’s Macintosh and iPod businesses, which combine hardware, software and online services in a user-friendly package.

Microsoft competes against Nintendo and Sony with its Xbox video game console; it designed the Xbox computer chips with I.B.M. and tightly controls software distribution. And in the market for cellphone handsets, three of the four major carriers now offer phones labeled with the Microsoft Pocket PC and Smart Phone brands.

The shift, analysts said, is being driven by Microsoft’s need to grab a share of markets that could grow more quickly than the PC industry, which is maturing.

Entertainment industry executives who were briefed on the Microsoft music and video player said this week that the device was equipped with a wireless Internet connection and an advanced display screen, and that the company planned to release it before the holiday season, along with an online store.

Full Story @ NYTimes

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