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Microsoft Argo: iPod Killer?

Last week, a Bloomberg story cause some excitement with claims that Microsoft was planning to release an iPod rival by Christmas of 2006. The new digital music player was said to include a wireless Internet connection allowing users to wirelessly download music. Microsoft is already meeting with Hollywood and music companies to license content for the upcoming device. (A photo has also been posted that claims to be a development model of the device.)

Steve Jobs predicted in January that due to the lack of iPod competitors, that Microsoft was "going to have to get into the hardware business of making MP3 players". Currently, Microsoft relies on 3rd party manufacturers to develop around a common hardware specification.

This week, more information about the upcoming Microsoft device was revealed. According to the Seattle Times article, Microsoft is actually developing a line of Xbox-branded digital media devices. The project is called "Argo" and under the Xbox development group.

What's being developed is actually a complete line of Xbox-branded digital-media products, including a device that plays media, a software media player and an online media service.


This would represent an more "end-to-end" business model described by Walt Mossberg that has brought Apple a lot of success with their Music Store/iTunes/iPod integration.

Meanwhile, Piper Jaffray analyst Gene Munster believes that Apple will release their own wireless iPod this fall and do not believe "the yet-to-be-seen Microsoft offering will be a worthy opponent for the iPod".

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73 months ago
Sounds more like a PSP killer than an iPod Killer. Looks like Microsoft is trying to move into Sony's territory.
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73 months ago
This is scary. While I have no doubts Apple's ability to "get it" will make Microsoft's offering pale by comparison, Microsoft might be able to more than make up for it through marketing and their dominant position in the computer and home gaming market. Then, as in the past, their monopolistic practices will slowly edge out Apple.

And I guarantee you that Microsoft will be much more willing to "play ball" with the movie studios to get the best/preferred deals in offering downloadable movies.
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73 months ago
more then likely the wireless part is directed at the ipod, but this will only stimulate competition, its about time apple is forced to compete with others for the best device again
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73 months ago
Well obviously none of us here are going to be terribly interested if it's not Mac-compatible. That said, Apple has a lot to lose, so I hope they adapt and compete well.
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73 months ago
Steve Jobs knew about this in January... this says a lot about his vision. I'm confident that he is already well-prepared for this and has something up his sleeve to counter it.

There will NOT be a sudden exodus to Argo from iPod. If it ever happens, it will be gradual and easy to fix.
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73 months ago

Well obviously none of us here are going to be terribly interested if it's not Mac-compatible. That said, Apple has a lot to lose, so I hope they adapt and compete well.


They will. Microsoft doing this will definitely cause Apple to be less stingy with the R&D and get some great small products to market.

God, I really hope that Leopard is more of an upgrade than Tiger was.
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73 months ago
Steve already knew this was going to happen. They're ready. I don't think it's possible to have an iPod killer anyways. The iPod is all about appeal for many, not necessarily the features.
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73 months ago
I still don't get the value of wireless in a music player--not in actual practice (battery life and added bulk, vs. the need to plug in to charge, which naturally takes longer than synching anyway).

But whatever it is, I think its chances will depend a lot on whether it can be as slim and light as an iPod, and the same elegant ease-of-use as iTunes and iPod.

If it has those things, the X-Box name could carry it to some kind of success. But of course there can be more than one successful product in a market--Apple is not in danger.
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73 months ago
So with the windows media center out they would be idiots to not convert it to a format for their player. This means Mac Media Center out this fall hopefully. :D
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73 months ago

its about time apple is forced to compete with others for the best device again


agreed. We haven't seen any ipod updates in a long, long time. The shuffle is over a year old, the nano is approaching a year, and even the 5G is no spring chicken any more. I certainly don't want to see MS cut too much in to apple's marketshare, but if a little competition means pushing apple a little more, that sounds good to me.
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