From Reuters

The first handheld gadgets to play music and movies on Microsoft’s "iPod killer" software will be available in Europe in the second half of 2004, the company said Thursday.

The gadgets will run on Microsoft's yet-to-be-unveiled Portable Media Center software in a direct assault on iPod, Apple’s hot-selling digital music player.

Working with a host of manufacturing partners, Microsoft is introducing a device that plays movies and stores digital photos as well as songs in a bid to grab a share of the fast-growing digital media player market.

"We think this is going to be one of the hot devices for Christmas 2004," said James Bernard, product manager for Portable Media Center.

The software giant has enlisted Creative Technology and Korea's iRiver International to develop devices for the European market.

Microsoft said the Creative devices will be available in Sweden, the United Kingdom and Denmark first, retailing for approximately $700 to $800.

The product will be available in Germany, France, Italy and Spain to follow, but also by year-end, Microsoft said.

Price details and retail launch dates were not available for the iRiver device.

The Creative players will be sold with 20GB or 40GB of storage capacity, with the latter providing 175 hours of video playback or 10,000 songs, Microsoft said.

The devices play MP3 files as well as audio and video content recorded in Microsoft's digital format. The devices run on the Windows CE operating system.

The Creative player weighs in 11.5 ounces-- roughly three times as thick as an iPod and roughly twice as long to accommodate its TV-quality color screen. It has a USB port and comes with audio and video outputs cable of playing media on a TV or a stereo.

Microsoft will be up against Paris-based Archos, one of the earliest entrants in the multimedia player market, and Dell to grab a piece of a market that some analysts predict will not take off for a few more years when consumers become more accustomed to saving video content on their PCs.

"I don't think these devices will be changing the consumer electronics landscape in any way this year. By definition, they just don't have widespread appeal," said Mark Mulligan, an analyst with Jupiter Research in London.

But longer term, Microsoft is betting heavily on its strategy to create devices that plug into their computers from which they can store and access all their entertainment content.

Microsoft's Bernard pictured a scenario where the owner of a Portable Media Center gadget would be able to store hours of their favorite music and movies on the device. They could then download from a news-oriented Web site a roundup of the day's news to watch on the train.

To that end, Microsoft is assembling media partners to provide content including movies, music videos and news. It has signed up music label EMI and digital music outfit Napster.

Bernard said more media alliances will be announced closer to the launch date.

OK......I already knew this.....what was the point of announcing this like it's new?

How much do you want to bet the product launch will be delayed or riddled with an unexpected problem? Longhorn has already been delayed.

As for "Billy" Gates ruling the world some day....I could get to his house in Medina in less than a half hour...and I'll tell you, Mr. Gates is closer right now than he ever will be to ruling the world.

:-:~ Phantom

eh, it's news to me

Ruling or ruining? I think the latter...

Just cause he's ruining it doesn't mean he isn't ruling it?
Bill Gates could the next religion!!!!
BEWARE!

I meant could BE

Open Source Firmware Already being developed for the Archos Multimedias

I think Microsoft is a great company... its pretty inevitable theyd have a try at their own music player. Microsoft and Apple are like Coke and Pepsi... they're bitter rivals.

$700 - $800?
JESUS! THAT IS ALOT OF MONEY! IT BETTER BE A GOOD IPOD KILLER!

wow, here we are almost one year later and the iPod is STILL gaining market share...what happen to the ipod killer?

creatives are far better