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[22/7/06 - Apparent confirmation] Reuters is reporting that Microsoft has been apparently touting a new player to record companies that they intend to launch by Christmas. Speculation is that companies will receive prototypes in coming weeks to test.

Interestingly, reports suggest that the iPod rival will also play video and have wireless functionality included, although Microsoft has declined to confirm any suggestions related to the story, which can be read here.

[Update 1]
The BBC is reporting that Microsoft says the recent reports are based on "speculation and rumours". In what might be described as a carefully worded statement, Microsoft commented that it didn't "have anything to announce at this time".

[Update 2]

Numerous sites are reporting apparent confirmation to come from a Billboard article next week. As the ArsTechnica story comments...

"Microsoft has confirmed the existence of the Zune portable music player and says that it will be out by the end of the year. In an interview published in this week's Billboard Magazine, Microsoft GM of Marketing for MSN Entertainment Business Chris Stephenson says that Zune is "a family of hardware and software products" targeting various digital entertainment services.

The Zune has been rumored to be capable of playing digital music, video, gaming, and downloading music over an 802.11b/g connection. Right now, however, Microsoft says the primary focus for the device will be on music. Zune will indeed have the rumored WiFi capability as well as an internal hard drive. Stephenson declined to divulge the full tech specs for the device, saying that those have yet to be decided."

http://arstechnica.com/news.ars/post/20060721-7326.html

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