Microsoft ready to fight iPod, iTunes

Microsoft’s battle for total world domination is heading into the handheld music player realm. According to inside sources, the company is preparing to launch both a new rival to the iPod and a new music service bent on toppling iTunes from its perch at the top of the online music world.

The company has apparently demonstrated a device which plays both music and video internally. It has also been negotiating with record labels about licensing for its own service. There is no specific word on when the device and the service will launch.

It would seem like an uphill battle for Microsoft against iTunes. They already provide the copyright software technology behind several of iTunes’ rivals, but none of those sites have been able to make any more than a small dent in Apple’s juggernaut. On the other hand, Microsoft will certainly have the money to fight the battle, and a base of Xbox devotees to harness and build from.