[E-Mat]

http://www.hindu.com/thehindu/holnus/008200609220340.htm

This is why:

Mark Mulligan, an analyst with Jupiter Media, says Redmond's decisions are based on long-term fear that Jobs will turn the iPod and its ecology of add-ons into a much wider platform. "Microsoft doesn't want Apple to develop a strong position in the media player business, and that includes PC," he says. "At a strategic level, they're probably not that concerned at making revenue from music... but the problem is that Apple is beginning to squeeze into Microsoft's digital home strategy."

[Terpfen]

Then they should worry about the PS3 and iTV, not the iPod.