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AAPL Stock: 509.46 ( 0 )

MS readies A/V player, music service

updated 01:55 pm EDT, Fri June 16, 2006

MS readies A/V player


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.


by MacNN Staff

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Comments

  1. porieux

    Baninated

    Joined: Mar 2001

    0

    hum

    Well if it's anything like the XBOX it will suck just like every other MS product.

  1. fletcher

    Fresh-Faced Recruit

    Joined: Jul 2005

    0

    Rumors

    This is like the rumor that Apple is going to use Intel chips. It's just never going to happen...

    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.

  1. Feathers

    Grizzled Veteran

    Joined: Oct 1999

    0

    tread softly

    Micro$oft must be very careful NOT to expose themselves to further anti-trust allegations ie: using their dominance in one area to leverage their position in another. Can't really see how they can avoid such a charge!

  1. Zang

    Fresh-Faced Recruit

    Joined: Jan 2004

    0

    Not again...

    What Microsoft forgets is that they're *Microsoft*, voted one of the companies least trusted by consumers. Most people only use Microsoft products because they have to, and they've had few homeruns in the past 5 years outside of the Xbox.

    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.

  1. jarod

    Fresh-Faced Recruit

    Joined: Apr 2005

    0

    heh

    Microgarbage. The only music they're going to hear is the one played at their own funeral.

  1. Dr.Funkenstein

    Fresh-Faced Recruit

    Joined: Jan 2005

    0

    Don't they

    come up with a *new* iPod/iTunes killer every six-months to a year? If they're not announcing one they're 'pre'-announcing that they're going to announce one soon.

    Ho-hum.

  1. chotty

    Fresh-Faced Recruit

    Joined: Jan 2003

    0

    What kill me is...

    WHAT makes M$ think they have even an OUNCE of creativity? - WHAT do they know about entertainment? -Hollywood - Media, etc? They just keep throwing $ at something, steal it or take over anything they feel a need to "compete" in. I can't STAND Ballmer - what a d***! Note to M$: THINK OF SOMETHING ORIGINAL!

  1. phillymjs

    Fresh-Faced Recruit

    Joined: Jun 2000

    0

    They need to just give up

    1) Any service they roll out will fail, because it won't work with iPods. 2) Any iPod competitor they roll out will fail, because it isn't an iPod. 3) Every attempt they make to kill the iPod or iTMS does absolutely nothing to harm Apple. All it does it further dilute the small chunk of non-iTMS marketshare over which the preexisting iPod/iTMS competitors are already killing each other. They are simply rearranging and adding deck chairs on the Titanic.

    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-a** 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

  1. MacScientist

    Junior Member

    Joined: Feb 2000

    0

    M$ stock not so hot

    If you have a copy of the June 16, 2006 issue of USA Today, read the story on Bill Gates. Pay particular notice to the graph of the Microsoft stock price. Prior to 2000, Microsoft's adjusted stock price rose exponentially. It experienced a lambda-point in 2000. Since then, the stock price has declined logarithmically. If you don't have the dead-tree edition, take a look at the same USA Today story on the web at: http://www.usatoday.com/money/industries/technology/2006-06-15-gates-microsoft_x.htm Note the graph of the stock price. While not as dramatic as the dead-tree graph, the story is much the same. Microsoft stock since 2002 has underperformed the S&P index.

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