[link|http://www.nytimes.com/2006/07/06/technology/06ipod.html|Microsoft Plans Its Own Hand-Held Player]
Microsoft has been developing its own hand-held music and video player to challenge Apple Computer's iPod and expects to have it in stores in time for the holiday season, entertainment industry executives briefed on the company's plans said last night.
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Until now, Microsoft has largely bet that hardware manufacturers like Samsung could come up with a device that would use Microsoft's software and cut into Apple's lead. But the company's plans to develop its own device are an indication that it may no longer be satisfied with that strategy.
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The shift is likely to anger Samsung, Sony, Creative Technology and other manufacturers that were persuaded to use Microsoft's software in their devices, because a Microsoft player would compete with theirs. The Xbox video game console, Microsoft's strongest move into consumer electronics, uses software that does not run on any other player.
I can't say I have any sympathy for the hardware manufacturers, they should have realized what they were doing when they got in bed with Microsoft in the first place.