A Microsoft executive yesterday confirmed the company is considering releasing its own "iPod-killer".
A report on Information Week refers to an earlier article by Business Week that claims the company is working on a device of its own, rather than simply relying on partners to compete with Apple's iPod. According to that report, Microsoft has put together a team to consider such plans.
A Microsoft spokesman has dismissed the Business Week article as "speculation", stating that nothing has yet been "officially" announced, but has confirmed that discussions are taking place.
Apple CEO Steve Jobs expects such a move.
Speaking to Newsweek this month, he said: "The problem is, the PC model doesn't work in the consumer electronics industry, where you've got all these companies and some does one thing and another does another thing. It just doesn't work. What's going to happen is that Microsoft is going to have to get into the hardware business of making MP3 players. This year. X-player, or whatever."