http://www.engadget.com/2006/07/06/microsoft-planning-wifi-enabled-portable-media-player-working-o/

Microsoft planning WiFi-enabled portable media player, working on MVNO 
for next year

Ok, by now it's more or less an open secret that Microsoft is going to 
shift away from its current model and go straight after the iPod with a 
portable media player of its own, but we've landed some exclusive 
details about the new player courtesy of a trusted insider who is party 
to some of the discussions Microsoft is having with potential content 
partners.

Here's what we've learned:

Microsoft's new portable audio and video player will have a screen 
that's "bigger than that of the iPod video" (which isn't really saying 
much) and built-in WiFi so you can not only download content directly to 
the player (sort of like with the MusicGremlin), but actually 
participate in an Xbox Live-like social network that will help you 
connect with other people with similar taste and interests. Whether 
that's going to be the Live Anywhere service they introduced at E3 we 
don't yet know. But we do know the tag line they're pitching for the 
device combined with this new network is "Connected Entertainment."

But it gets better. To attract current iPod users Microsoft is going to 
let you download for free any songs you've already bought from the 
iTunes Music Store. They'll actually scan iTunes for purchased tracks 
and then automatically add those to your account. Microsoft will still 
have to pay the rights-holders for the songs, but they believe it'll be 
worth it to acquire converts to their new player.

Right now the new player is schedule to launch in November, but our 
source also tells us that Microsoft isn't stopping with a WiFi-enabled 
PMP, they're actually going to launch an MVNO next year using all 
Windows Mobile-powered HTC handsets. These handsets will let users 
connect to the same social network you'll be able to access over WiFi 
using the portable media player.





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