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Microsoft's iPod Killer Plan
By Lance Ulanoff

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Can the rumored player and service kick some iPod and iTunes butt?

Years ago, I predicted Microsoft would walk away from the X-Box platform (just as it had done with other doomed hardware ventures: sound cards, wireless networking hardware, etc.). I was wrong and, at this point, I hope the company never loses interest in the popular gaming console. Now J. Allard, the guy who brought you the X-Box, is reportedly preparing to help Microsoft launch a wireless iPod rival and connected music service sometime later this year. I'll call it, for want of a better term, the "MiPod".

Allards' involvement appears to give the whole project the imprimatur of success, even though there's nothing on the market and Microsoft isn't even commenting on the rumor. The reality is that Redmond will be on far shakier ground with this wireless iPod killer than previous ventures. It faces wicked competition and a youth market that believes Apple is cool and Microsoft is not. What's more, with Gates leaving and other key execs making quiet exits, there's a sense that the company is going through a fundamental shift. Is it the right time to try and roll out a market-changing product? So many questions. So few answers.

If Microsoft did start talking about its plans, I'd ask these questions (and I'll even make up my own Microsoft-esque answers):

Why?
We cannot stand that Apple owns this market. We thought we could get a piece with the Windows Media Player-based players, but even with all those WMP-based players, we still have maybe 25 percent of the market. For us, it's 90 percent or nothing.

How should companies like Samsung, Phillips, Creative, Toshiba and others perceive this move?
Perceive? Let's be clear: they don't have to perceive anything. What we do will help them…we promise. If our player somehow becomes more popular than all their players put together, well, that's not our fault—well, it's our aim, but not our fault.Continue reading...

You already have MSN Music and Urge (with MTV), and there are many places to get WMP music. Do we really need another service?
You bet you do. You need our service. This one will be so tightly integrated with our new player you won't be able to slide a pin between them. The other services are nice—er—we mean great! And we wish them all the best. Our player and services will simply share a marriage unlike any other found between competing player and service.

The MiPod's wireless capabilities could put it in direct competition with the small-but-growing phone/player wireless music download service market. Are you ready to compete with companies like Verizon and Virgin mobile?
Our smart phones download music, too, so we're already there. We're not afraid of Verizon, Virgin or any other mobile service provider. We just want our player users to have all the same opportunities as other mobile users and we want to be special, really special, in the market and make everyone forget that there's any other way to get your music (and videos) over the air. We rule!!! (Sorry, we've been doing corporate training on enthusiasm—guess we got carried away.)

What does this mean for the Portable Media Player market.
Put a fork in them. They're done.

Does Allard's involvement mean that the MiPod will look like the iPod-influenced Xbox 360 and, if so, could it just end up looking like another iPod?
Our 360 looks like an iPod? Funny, we never noticed that. Um, well, our player will look different, unique, elegant. Special. It may be white. We're not sure.




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