Microsoft’s iPod Competitor Headed by ex-iPod Development Head

Microsoft Corp. is developing a music and video device to compete with Apple’s iPod and creating its own music service to rival Apple’s iTunes, sources familiar with the plans said on Friday.

Robbie Bach, a rising star at Microsoft who headed development of the Xbox video game business, is overseeing the project, one source said.

The company has held licensing discussions with the music industry and is already demonstrating the entertainment device, the sources told Reuters.

Microsoft’s service will emphasize the pay-per-download, or a la carte, model, sources said. A subscription component will also be offered, according to early accounts of the planned service.

One source, who has seen a demonstration of the service, said it was an improvement over iTunes.

via Register