digital music/video
06/16/2006, 1:55pm, EDT
Friday, June 16th
MS readies A/V player, music service
Microsoft is developing a portable audio and video player to compete with Apple's iPod, and is readying its own music service. An executive at Microsoft who headed development of the company's Xbox video game business, Robbie Bach, is handling the project, according to Reuters. Microsoft has already held talks about licensing with the music industry, and is currently demonstrating the product. The recent launch of Urge -- a joint effort between Microsoft, MTV Networks, and Viacom that provides an online music offering compatible with portable players other than Apple's iPod -- signaled a major move by Microsoft and others to take on the Cupertino-based company in the digital music industry. An online music service from Microsoft would suggest a shift in strategy for the company, which in the past has provided software for other music services such as Urge.
Filed under: industry
Other story tags: digital music/video
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Seriously, it seems odd that Microsoft would create Urge just before rolling out an even newer Microsoft-branded music service. And, Microsoft execs went out of their way recently to deny that Microsoft is creating a music player in-house. They insist that Microsoft is working on a music player platform rather than their own device.
If they were smart, they'd get back to focusing on their core applications and operating system. If they've spent the past 6 months developing new audio hardware and software just to compete with Apple in an arena they've already tried several times to compete in, when they KNOW they're having major problems with the quality of and deadlines for Vista, they're retarded. They're already spreading themselves pretty damn thin; it would be suicide to enter into a market where they have a high likelyhood of failure. The shareholders already have issues with the company, with the stock doing little except slowly sinking into the ocean.
Ho-hum.
Obviously, Microsoft thinks that this market is just like the others they've taken over-- that if they keep trying and throw enough money at it, they'll eventually come out on top regardless of the quality of their product. What they don't seem to realize is that they have been hoisted on their own petard. They thought they could take over with their own DRM, but Apple got there first with FairPlay in the iPod/iTMS, got off to a big head start, and people who have already invested in that 'system' will be highly reluctant to switch to something else. Without DRM-induced market inertia, Microsoft's old method might have worked. Instead, they're really going to have to come up with a kick-ass music player and online store. And even if they do, there's still a high likelihood that people won't switch because they're too invested in iTunes.
~Philly