Expect Microsoft's rival to iPod by holidays

Seattle PI | at | by Mike

Microsoft is planning to have a portable music and video player out by Christmas in a challenge to Apple Computer Inc.'s iPod.

The digital player will have a wireless Internet connection, enabling users to download music without being linked to a computer, a feature the iPod doesn't offer, according to people briefed on Microsoft's plans.

The Redmond company is seeking to take share from Apple's iPod, which commands 77 percent of the $4 billion U.S. market for digital music players, based on figures from market researcher NPD Group Inc. Apple's iTunes music store is used for 72 percent of music downloads. Microsoft has spent the past six years relying on partners to make players that use its software.