View this article at: http://dev.macnn.com/articles/05/08/11/ms.fires.warning.shot Thursday, Aug 11, 2005 7:50am Microsoft works with partne... Microsoft executives said that the iPod will face increased competition this holiday season, as it works with its partners to release products that are more competitive with the iPod. In an interview with Bloomberg News, the head of Microsoft's Digital Media Division said the company was working with Royal Philips, Samsung, and Creative Technology to design and test music players that rival iPod: "Come this fall there is going to be a number of devices that get close to competing with Apple's iPod," Huggers said in an interview in San Francisco yesterday. By the second quarter of next year "there is going to be a whole lineup of products that can compete with Apple in industrial design, usability, functionality and features."