Apple may have an 80 percent share of the mobile media-player market, but that doesn't mean the iPod is unassailable.
With the exception of the Xbox and a line of PC keyboards and mice, Microsoft has largely kept out of the hardware business. According to reports published last week, however, the company plans to take on Apple and other gadget makers directly, launching its own Microsoft-branded media player in time for the Christmas holiday shopping season.
Reviving rumors circulating since a Reuters report in mid-June, entertainment industry executives privy to Microsoft's plans told the New York Times last week that the Microsoft media player will have a larger screen than the industry-leading Apple iPod, and will download data wirelessly using a built-in Wi-Fi chip. Microsoft is reported to be in negotiations with recording studios and television networks to sell music and videos tailored for the device through an Internet site similar to Apple's iTunes Music Store.
Microsoft told the BBC on July 7 that talk of a Microsoft rival for the iPod amounted to "rumors and speculation." But the company didn't directly deny that a portable media player is in the works, merely saying it had nothing to announce on the subject.
If the rumors are true, the project underscores a gradual strategy shift underway at Microsoft, as it adapts to an era in which more and more digital content is being delivered to devices other than PCs. Those devices need software too, creating a new market Microsoft isn't willing to cede to competitors -- as its investment in mobile-phone operating systems and other alternatives to its bread-and-butter desktop software products shows. By building its own media player -- Lance Ulanoff of PC Magazine has cleverly christened it the "MiPod" -- Microsoft could solidify its place in the era of mobile digital content, and would no longer need to rely on manufacturing partners to design and market devices using Microsoft code.
But any company entering the media-player market must contend with the iPod. Apple rivals such as Creative Technologies, Samsung, and iRiver offer devices with comparable capabilities, but have barely dented the iPod's 80 percent market share. Microsoft, meanwhile, has a mixed record in the hardware business. The Xbox 360, for example, has wooed many advanced gamers away from Sony's PlayStation 2 -- but it has yet to turn a profit, thanks in part to high manufacturing costs. And Microsoft lacks Apple's marketing savvy and cult following, especially among youth.
Can Microsoft hope to produce a real iPod killer? Many observers are skeptical. Yet Microsoft has enjoyed a number of come-from-behind victories. If product developers in Redmond have studied the mobile-media market closely and learned from Apple's successes (and failures), the MiPod has a chance of becoming a credible rival to the iPod.
There are a few specific steps Microsoft could take to help the MiPod gain a foothold -- though it may already be too late, if the company is really aiming for a year-end release.
1. Keep It Simple.
In other words, don't use Windows as the MiPod's internal operating system. With Windows CE and its successor Windows Mobile, Microsoft has demonstrated an almost obsessive preoccupation with adapting its core operating system product for devices other than PCs. But many of these devices have limited functions or run only one program at a time, which means Windows -- with its submenus-within-submenus-within-menus -- is overkill.
A case in point is the Motorola Q, a new smart phone designed by the same team that built the highly popular Razr. The phone is winning praise for its thin form factor, convenient keyboard, and high voice quality. But it is being faulted for its needlessly complicated software interface, which depends on Windows Mobile 5.0.
Microsoft engineers are doubtless under pressure to build the MiPod around either some permutation of Windows or the company's existing Windows Media Player software. But the appeal of the most successful handheld gadgets lies partly in the fact that they aren't as fussy and complex as PCs or desktop software. Microsoft should start from scratch.
Guest (Arlen Owens II)
I don't think MS can overcome it's obsession with licensing issues to allow the kind of "easy sharing" that music downloaded from iTunes affords. MS will lock down the users' abilities to burn too many CD's and will be totally focused on pushing technologies like "subscriptions" that the users just hate. The truth is, you can download a song from iTunes, burn a CD, rip it onto one of your other computers, and burn to your heart's content. It allows people to purchase music and share it among their multiple computers or friends. Yes, some of that may be fringe illegal, but MS will do everything to restrict the users' ability to share. It's in their DNA.....a part of their corporate culture. I think that will be their downfall.
Guest (Brian)
not a word in microsoft's dictionary. In order to re-invent the iPod they need to re-invent themselves - a tall order.
wi-fi is too slow at the moment. where do I get these new excellent batteries? MS needs to invent them too.
Guest (Gurn)
If somebody wants to make a real dent in the iPod market, fix my two biggest complaints:
1. Scrolling through thousands of artists on a 30 or 60GB ipod takes forever with that stupid wheel.
2. Allow me to create playlists on the fly. Don't make me spend hours at my computer creating playlists.
Oh, and compete with the ridiculously low cost of the iPod for the storage. That's the only reason I bought the product from apple. Seems like they've got to be subsidizing the hardware.
Guest (Tom)
Well... you can do playlists on the go with an iPod... they are called (ironically) On The Go playlists. ;-)
Guest (ConTho)
The Funny things about the Apple iPod Lists and On the fly playlists is RIO had that fixed with the Karma. You were able to short cut to the first letter and you could create playlists on the device... I hope MS is smart enough to talk to the existing "Play for Sure" device makers and license some of their ideas.
Guest (gslusher)
1. Could you suggest a faster way to scroll using minimal manual controls?
2. It's a LOT easier and faster to make playlists with the computer. You complained about the scrolling. To make a on-the-fly playlist, you'd have to scroll through each artist's albums & songs, go back up the menu, find another artist, etc. It would probably take at least 50 times as long to do on the fly.
However, the iPod ALREADY HAS THAT FEATURE. It's called "on-the-go" playlists. Get the PDF manual and read about it. It helps to do a bit of research before shooting oneself in the foot.
Guest (Jeremy Czubko)
WIFI is faster than USB or Firewire???
USB and Firewire are both faster than WIFI! Try sending a library of 6000 mp3s over wifi and then over firewire and tell me which is faster. I think this article needs a little bit more thought. Itunes is GOOD at organizing music! When a cd is put in the computer, itunes opens, uses the CDDB to look up the tracks and metadata, you import the songs, and voila! the music gets loaded to your ipod the next time it is plugged in! I don't understand why the writer things there are issues with itunes. Microsoft needs to do two things to gain ground against Apple. Microsoft needs to copy apple's system (Again) and sell it for less.
Guest (Mitch Coopet)
I agree with this comment - USB 2.0 is ~400 Mb/s as is Firewire. The latest version of Firewire supports 800 Mb/s. Wi-Fi is 54Mb/s - 108 MB/s under IDEAL conditions. Perhaps, the writer is privy to a brand-new gigbit Wi-Fi protocol, which I'd love to read about!
Guest (cyboreric)
I agree...both USB and Firewire are faster than wifi but I still think WiFi synching locally with your library would be great. Right now my PPC synchs with my system via WiFi and it would be nice if all my devices synched via wifi. That way I can leave all my devices in my front hall on my key table without having to lug all my devices into my computer room to synch.
Also, I think iTunes is a horrible program. It's slow and cumbersome and its mp3 tags are not standard...you rate a song in itunes and it doesn't follow accross library's.
Guest (dave)
Not one journalist, blogger, or speculator has ever pointed out something so incredibly obvious. Although the iTunes Music Store sells Protected AAC (MP4) files, iPod users by and large have converted their CD libraries to unprotected AAC (MP4). This is a completely open and free format -- the MPEG-4 audio standard -- that anyone could support. Not one single iPod rival has included it. So users like myself with over 140 GB of open source, free MP4 audio files cannot switch from the iPod. Everyone zeros in and focuses on the FairPlay DRM version of AAC that Apple uses in the store, no one points out that every rival could include AAC support and doesn't. I have to believe that in Microsoft's quest to rule the digital audio world with WMA, their propaganda campaign of "Plays4Sure" requires that MP4 support be excluded, thereby crippling those who try to take on the iPod.
Guest (Tony Martin)
'come from behind' days are over?
The last 'come from behind' victory was when IE over took Netscape. The X-Box has yet to take the crown from Sony's PlayStation and MS is no where in the league of Google. I doubt, with being on several war fronts, that MS can have the talent or stay power to take on the iPod. All this while it seems Apple is intent on taking some of Windows market share with OS X and the new Intel Macs.
Guest (Dave)
'come from behind' days are over?
I disagree. The X-box 360 is well on it's way to beating the PS3, MSN actually receives more total hits than google, sure they win at search but in a fight that is ultimately about advertising he with the most hits wins. I will give you the iPod - Apple is effortless crushing all competition but I think MS is much more of a threat than you give them credit for.
Guest (da)
the itunes store is absolutely perfect...iTunes as a jukebox yes needs much work
Guest (ms)
Perhaps if the beamed version were slightly degraded (as it would be for analog copying) it wouldn't run afoul of DRM and wouldn't require complex agreements with the industry.
Guest (Paul)
iTMS doesn't support subscription music, a business model I (and most others I talk to) much prefer over the "you-buy-it-you-sort-of-own-it" model that iTMS uses exclusively. That alone is enough to make me put up with the less than perfect hardware that is currently available. The iPod has better software, a nicer interface and way cooler hardware than any of the WMA playing DMPs. Perhaps MS can make something that is hardwarily as beautiful as the iPods, if so then Apple will have to look out.
Guest (How Goes It)
Only 17% of downloaders have used Subscription
According to this URL, http://news.com.com/2100-1027_3-6090042.html?part=rss&tag=6090042&subj=news only 17% of downloaders have used Subscription
Guest (Podboy)
Everyone you talk to prefers subscriptions do they? - Is that why Napster and Real are still struggling with their subscription-based business models?
Guest (LW)
How about: Be less arrogant than apple: Open the APIs
The thing I hate most about apple in relation to the iPod is their arrogance that they think they know what consumers really want their iPods to do (and not do). I've asked them in the past to open up the API layer to give easy access to the tune library on the iPod from other devices and they won't give this to the public. My most sincere recommendation to anybody that wants to develop a rival music device is "open in up" to allow your customers to innovate on the platform.
Guest (LW)
- Provide a JAR file w/ API calls that can be run from any system (unix, linux, mac, windows, whatever)
- Provide a published API at the hardware connector level to allow 3rd party devices to connect to it and interact better (done too exclusively w/ a few car stereo manufacturers today, but their are many other applications I can think of that I'd love to see)
Guest (Wade Roush)
WiFi IS slower, thanks for the correction.
I've fixed this error in the story. Thank you, dear readers.
Guest (Anonymous)
iTunes does NOT require much attention to sync w/ iPod
The assertion, stated in the article, that "Determining which files are stored on one's PC and which on one's iPod, and whether the two are correctly synchronized, requires careful attention." is totally ridiculous. The current iTunes-iPod syncing works extremely well and extremely easily on any computer. Once the iTunes software is installed (which is, again, a very simple process), one must only choose a name for the iPod and it transfers everything. To change settings takes two clicks within the iTunes interface. Moreover, iTunes provides easy-to-understand feedback about the process of music transfer to the iPod and allows the user to easily tell which files have been transferred.
Guest (Ted)
Microsoft should create a standard control interface that car manufactures and home stereo manufactures can use to wirelessly listen and control the MPod. Imagine you buy a car with built in MPod functionality and your home stereo also has that functionality? Would you buy an IPOD or an MPod? Give it away to all Car and home stereo manufactures.
Guest (dan)
radio shark not for streamed audio
griffen's radio shark peripheral is for recording and timshifting terrestrial radio not internet radio
Guest (JuggerNaut)
If Argo is Windows-only, it'll surely fail!
I think people put more emphasis at computer level compatibility (hence multiplatform) than what is assumed by the so called experts. Since most portable media players offer no real product differentiation to their competing rivals, then folks are going to keep with one they no works and works well with both Mac and Windows. People want real choice everywhere and Microsoft's approach impedes that on the desktop computer!
Guest (JuggerNaut)
D'OH! meant "know" rather than "no"...
for any of those human-based spell/grammer checkers out there ;-)
Guest (anon)
this artcile is pure crap. no suggestion is truly innovative. perhaps what the auther should have written is that if MS is willing to take a serious financial hit then they can buy themselves into the market. MS is pathetic. how about the create their own new product cateogory instead of always siphoning from others
Guest (LW)
I feel you're missing the point
It doesn't matter if microsoft or anybody else is reading this article. The point is that the IPOD is far from ideal, and it needs stronger competition to force the whole product segment to improve.
Guest (rjv)
Some observations
1. "And Microsoft lacks Apple's marketing savvy and cult following, especially among youth."
Apple has sold 40MM+ iPods. It is not because of a cult following
2. " Yet Microsoft has enjoyed a number of come-from-behind victories. "
Yes, but they were largely the result of using their monopoly status to force their product on people (thus that little anti-trust conviction).
3. "Keep It Simple."
Microsoft has never shown the ability to keep it simple. They have always prescribed to the 10+1 strategy. And the 1 is usually pretty bad.
4. "the iTunes Music Store, is far more confusing to navigate than true retail websites such as Amazon"
> 1 billion songs sold with that crappy ui!
Guest (rjv)
5. "Put Wireless Connectivity to Good Use"
I was not aware that wifi is that ubiqitous. This has the makings of another Tablet PC.
6. "Be Less Paranoid about Sharing"
That is a RIAA issue and less a retail issue. Maybe RIAA can break Apple's back by giving permission or MS will dole out cash at a loss to facilitate this. Unlikely.
I think this needs to better thought out. Merely wishing that MS take this market will not work
Guest (Daniel Velázquez)
Windows based products are the best food for computer viruses, then you have to buy the antivirus for the PC where you store your files, antivirus for your MusicPlayer because some could hack it via Wi-Fi and of course Microsoft will sell that antivirus. And don't forget that you'll have to buy at least the last ServicePack in order to use it and you will have to use only Registered media files and all those annoying things that MS based products likes to do. And of course you can't do a better looking MusicPlayer than an iPod
Guest (tim)
probably gonna download from the net with the wifi? if you dont have the song you can buy it even if you're in the bathroom.
Guest (Ideapreneur)
Most of these info are been tried by creative except for the Itunes. Maybe to beat Ipod, MS should just buy Apple.
Guest (Podboy)
If Microsoft bought Apple the whole industry would stagnate. - Where would Microsoft copy its 'innovations' from then? - Linux? - LOL
Guest (Dave)
Guest (Foncused?)
Guest (Jay)
Regardless of what manufacturers claim, Lion batteries lose capacity in use. At very least, they should follow the lead of some pocket camera makers and make them user replaceable.
Guest (silviok)
Microsoft has always won at the end because they make their products platforms on which other developers can add functionality. If they do that then 3rd party applications will make their player irresistable.
Apple neve really understood that.
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Guest (brad)
How the "Microsoft iPod" Might Succeed
So MS would need to do everything that's already being done, but do it better.
"Apple controls an entire mobile media ecosystem, from the copy-protected AAC format of the original music and video files... It doesn't have to share its revenues with anyone except the record labels and TV networks that create the content."
Apple does have to licence it's use of the industry standard Mpeg4 format. If MS used it's own proprietary media formats, they would have the advantage of avoiding standard licensing fees, while increasing their own licensing income from gadget makers using MS media formats. Apple doesn't have this luxury. They don't own Mpeg4.
"Wi-Fi transmits data faster than USB or FireWire"
Firewire speed is 400Mbps and 800Mbps. The fastest WiFi is about 70Mbps, isn't it?
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Guest (dave)
MPEG-4
True Apple doesn't own MPEG-4. No one does. The open consortium of the MPEG group of which Apple & Real are part of have kept it free and open knowing that Microsoft would do something like come up with a "Windows" media audio file that they would try to consume the market with. MP4 was left open to defend against that. And the RECORD COMPANIES demanded DRM. If Apple didn't find and use FairPlay to protect its files, no one would be buying legal downloads. It would be nothing but lawsuits and filesharing.
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Guest (Lazlo)
The author
Apparently the author of this article is working for MS and has no grasp of technology, because
A. Wi-Fi is not faster than USB 2.0 or Firewire
B. itunes lets you convert to many different file formats, including standard mp3
C. iTunes music store and the itunes software are incredibly easy to use, even all my computer illiterate employees have and use an ipod.
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Guest (Sean)
How it will succed ?
Simple do what the ipod fails to do . formats : it shoudl play ogg and flac and wma and mp3 and m4a ad mp3. I can't understand why all players don't do this . it's cant be that hard to include a codec for something . The wifi thing is very cool but i think ipod has dones o well cos it appeal to the not tech minded so i think maybe thats the key consern
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