Windows Phone Thoughts: Microsoft Planning a Portable Media Device to Rival the iPod?

"After getting trounced for four years in the digital music business by Apple Computer (AAPL), Microsoft (MSFT) finally seems poised to do something about it. BusinessWeek has learned that the software giant is working on plans to develop its own portable digital media device to rival the iPod, rather than just providing technology to partners. Microsoft hasn't decided if it will go ahead. But sources inside the company and at its partners say Microsoft has put together a team that's considering the business end of such an initiative."

Microsoft has the power to pull something like this off. Peter Moore suggests that the use of the Xbox brand name could give the device greater market penetration. And, if you think about it, he's probably right. There are so many Portable Media Centers out there that get lost in the clutter of other media devices that nobody even gets the chance to notice them. Then you have the iPod. Everyone knows the iPod name. Similarly, everyone knows the Xbox name. If Microsoft can tap on that concept, and put together its brightest minds and create an integrated hardware/software solution as solid as the iPod & iTunes combo, then maybe, just maybe, this iPod rival might get somewhere.

And, while on the topic of the Xbox, I'm going to use this space as a public service announcement for all our ANZ readers. The Xbox 360 release date has been pushed from March 2nd to March 23rd. Microsoft claims that it was a necessary move based on "unprecedented global consumer demand and short-term manufacturing issues." As if the wait wasn't long enough already. :(