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Butt-ugly. Does not even come close to the iPod. However, there are rumors that Microsoft is willing to spend a billion dollars to "buy back" all the iTunes songs in AAC format in order to lure iPod consumers to a Microsoft device. For example, if you bought 800 songs on iTunes over the past couple of years, Microsoft is apparently willing to buy those 800 songs for you in WMA format from their own music service provided you buy this Microsoft MP3 player.
News [Music/MP3 players]So, unless Microsoft is attempting to emulate Apple in both iPod AND secrecy (Do you really think MS can keep anything secret?) ...Monday 10th July 2006 - 11:33AM
Microsoft quells iPod-killer rumours
Microsoft has moved to quell rumours that it is about to introduce a portable player and downloads store package in an attempt to crack the Apple iPod/iTunes axis-dominated digital music market.
The company told the BBC that reports that it will unveil the new offering in time for Christmas are mere 'speculation and rumours'. . .
I think that re-purchasing the iTunes songs a customer has already purchased would be considered an anti-competitive action... and could cause MS some legal problems. I also think that the Music industry might have some negative things to say about their model especially if it allowed copying said songs to other MP3 players.