Microsoft is going to team up with Toshiba Corp., Victor Co. of Japan, NTT DoCoMo Inc. and five other companies in an effort to actually make something that can compete with Apple's iPod combo in Japan.

After the incredible reaction of the public to URGE, it is not surprising that Microsoft wants to try something different, and Japan is the right place for it. The iPod has less penetration in Japan, as many people prefer devices that can function both as a mobile phone and a media player, a device Apple does not have.

Of course, the device itself will be made by Toshiba and Victor, while Microsoft will only be handling the software side. DoCoMo is Japan's largest mobile phone operator and it has already announced sometime last month that it will be offering a handset compatible with Microsoft software and allow users to transfer media files and play them on the go.

As far as partnerships go, this one looks pretty solid, with lots of big players aboard, but that can lead to problems, when you have too many horses on one cart. Nevertheless, it is amusing to see nine companies gang up to try to beat the success of a single company… question is, can they do it? And the answer to that is yes, unless they screw it up really bad. The iPod was does not really satisfy the Japanese market as well as it does the US and European one, and unless Apple releases some new device, the new product will not face much competition from the iPod.