Reuters: Microsoft Developing iPod Rival

Intriguing news that may or may not be news because it has been bandied about for ages. While I’m pondering some questions regarding Mobile entertainment, this flashed across the wires from Reuters. The old stand-by and authoritative ““sources say” that Microsoft is indeed developing a rival to Apple’s iPod and iTunes media double date.

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

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

The news comes one day after Microsoft founder Bill Gates announced he would ease out of a day-to-day role at the company he built into the world’s biggest software maker.”