Microsoft's spin doctors have rushed to dispel growing rumours the company plans to launch its own MP3 player.

In language that's straight out of Apple's phrasebook, Microsoft dismissed these reports as "based on speculation and rumour". Microsoft added that it has nothing to announce "at this time".

The New York Times last week explained Microsoft plans to release its own iPod competitor, and that it may even offer inducements to iTunes users to attract them to Windows-based music services.