david wb

Microsoft's iPod Killer Emerges -- Should Apple be Scared? You Bet! (AAPL, MSFT)

Given the inability of Microsoft's media partners to compete against Apple it has to do something. Apple already dominates music and is making inroads into video. Who will buy Microsoft's DRM and media software if Apple controls the industry?

But the burning question for me is: what does Microsoft think it can do that companies like Sony and Samsung cannot? In the short term Microsoft's 'success' in the media player market will come at the expense of its former partners. Apple isn't likely to be hurt any worse by Microsoft than it has by any other company.

So now my next question is this: If I am right that Microsoft's customers will come mostly at the expense of its partners, what will the long term consequences be?

I see this as a high stakes must win move for Microsoft. And I don't see much hope for a win.