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Microsoft is working on its own version of the iPod, according to a number of reports circulating. The wireless product could even be out by Christmas. A music service will supposedly be paired with it-possibly an all-new one.

The Associated Press talked to "executives who spoke on condition of anonymity because plans for the player have not been made public." These shadowy figures said the device "would play digital music and video files and carry wireless technology, enabling users to download music without linking to a computer."

Microsoft will face a serious uphill battle, though, which will hopefully result in consumer-friendly pricing and all sorts of nifty features. Apple's iPods and iTunes control huge shares in their respective markets, so the newcomer will need to do something noteworthy to break in.

Phil Leigh, an analyst with Inside Digital Media, believed this is an important development for the Redmond-based corporation. "It's becoming increasingly evident that video is migrating to the Internet, and Apple is getting a lead there as well," Leigh said to the Associated Press. "That is a lead that Microsoft cannot afford to let them build upon and maintain."

The company has yet to make any official statements about its would-be iPod killer. But J. Allard, a key figure behind Microsoft's Xbox, is supposedly hard at work on the project. If that is indeed the case, it would definitely heighten expectations. Putting Allard in charge of development would be a wise move-if Microsoft intends to do well in this market, it will have to put out a very competitive product.

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Doug is a staff writer for WebProNews. Visit WebProNews for the latest eBusiness news.