Microsoft's MP3 Player to Tackle the iPod

Microsoft is all set to enter the portable MP3 player market, seeking to give stiff competition to the Apple iPod. Microsoft will team up with nine Japanese companies including NTT DoCoMo, Toshiba Corp and Victor, to develop a portable MP3 player integrated with Microsoft Windows Media Player.

Microsoft’s MP3 player is due to come in the form of a mobile phone handset that can run on Microsoft’s software, something on the lines of Apple’s upcoming iPod phone. Microsoft will develop audio and video playback software and provide it to Toshiba and Victor, which will develop portable music players that accept the software.

Other key companies in the tie up are archrivals of Apple - Creative and iRiver. The date of the launch has not been made public yet, but this will be Microsoft’s first step in the music and video downloading service industry in Japan, which is dominated by Apple’s iPod.