Microsoft's New Portable Device Will Kill The iPod

The recent report by Dean Takahashi for The Mercury News sheds some new light on Microsoft's plans for a portable device that will rival the iPod. But just because they say so, doesn't make it true…

For one thing, this new device would be more akin to the PSP than to the iPod. There is a clear difference in target audience here. The PSP is targeted at people who want portable games, and the music and film capabilities are extra icing on the cake. Meanwhile, the iPod is a portable music player, and is targeted at the portable music player market. These two devices are no more a treat to each other than the PSP and iPod are. The two markets are totally different in needs and expectations. Who wants to pay twice as much for a device that can also play games when all they want is to listen to music?

Furthermore, the Microsoft Music service, sounds nice, but that's about it. Last year, Microsoft announced their partnership with MTV to bring the world URGE… Where is URGE? Probably playing with Vista somewhere out there. And even if Microsoft were to actually get such a service together, what would all the Microsoft partners say? Napster and Real Networks would surely be thrilled.

Still, it's too early for speculation, if the device, and presumably the service, will become available in 2007, we can safely postpone the speculation until 2009. Meanwhile, the only device that is actually competing with Apple's iPod is Apple's iPod.