Organisation: Microsoft

Analysis and commentary by Echo Research.

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Speculation heightened this week over the launch of an 'iPod killer MP3 player' by software giant Microsoft. The new device is rumoured to sport video and audio playback, wireless connectivity and a better-quality screen than the iPod . All very impressive but the somewhat important question 'Does anybody want it?' (Market Watch 6/07) is yet to be answered. Microsoft is pitching its product to a market where Apple has established a '75% share' (BusinessWeekOnline 07/06) and is targeting youthful consumers (already dubbed the iPod generation) who believe 'Apple is cool and Microsoft is not' (PCmag.com 07/07). Not looking good.

Until recently Microsoft has pursued a 'partner-orientated strategy' collaborating with powerful players such as Dell and Samsung and 'putting an awful lot of sweat into making the hardware right' (New York Times 07/07). The move runs the risk of 'undercutting the digital music ecosystem' (BusinesssWeek Online 07/06) with the possibiility of curent partners seeing a competing player from Microsoft as 'a betrayal' (New York Times 07/07).

Microsoft currently refuses to comment but is apparently set to throw 'significant marketing dollars behind the launch' (CNNMoney.com 05/07). However, with Apple set to reveal the 6th generation iPod later this year, also with wireless connectivity, Microsoft's catch-up effort may be too late.