After they hopelessly failed to compete with the iPod, many would have expected Microsoft to call off all weapons.
But in this juicy market, they simply cannot remain on the sidelines.
The first volley in the battle was probably the announcement of Windows Media Player for Mac. As this software hadn't been updated for so long, it means that, in all likelihood, Windows Media DRM will never be supported on a Mac. Moreover, their DRM are precisely the ones used by all the iTMS competitors as well the potential future HD-DVD standard. Therefore, while they promise to support the Mac via the MBU, they attempt to marginalize Apple's iPod and iTMS.
According to Businessweek the second step of their assault is that Microsoft is reportedly preparing a new music player. To regain market share, it would be an audio player, a video player and also a gaming console.
So, it is likely that the PSP market that would also be affected.
JCJ
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