February 11, 2006 4:24 AM PST

Gates: We will challenge iPod

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Microsoft and its hardware partners will build new devices to combat the iPod's dominance, the company's chairman said.

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Late again, but still a dreamer....
"The Microsoft founder praised Apple's iTunes music store and said
the software giant was talking with hardware partners to create
media devices that can be less expensive and easier to connect and
can handle pictures and video better."

Ol' Bill has one h--- of a job on his hands to meet those goals.
Posted by Earl Benser (4342 comments )
Reply Link Flag
atleast he's thinking of "improved products" for "lower prices"
unlike the money monger steve jobs.
Posted by mahurshi (180 comments )
Link Flag
Gates should be asked 'why'?
Since Mr. Bill was speaking to children in this instance, I won't hold
them responsible for not asking the most pertinent question: "Why
should iTMS' 80 percent share of the digital music market be
attacked, but not Microsoft's 90-plus share of the computer OS
market?' A reporter somewhere should have the gumption to ask
that, straight out.
Posted by J.G. (832 comments )
Reply Link Flag
Easy Answer!
Reverse the question! If you want to ask a question about why the MS OS market should be attacked then why not the iTMS? Not that I disagree with you...but It's a two way street.
Posted by BlinkMM182 (63 comments )
Link Flag
Isn't it?
I think I have seen an Apple commercial or 2, somewhere.
Posted by catchall (246 comments )
Link Flag
re:
Without defending Microsoft in anyway (believe me), what exactly do you disagree with?

Taking this article solely, I would agree with him - no product or service should be taken as the 'final answer'.

The article specifically says Gates 'praised' iTMS.
Posted by uparrow (19 comments )
Link Flag
Why? Remember STRETCH
IBM's STRETCH super computer of the 1960s effectively put CDC
out of business which had the CDC 6000 on the market. IBM told
customers not to buy CDC 6000 because their STRETCH was going
to be much better, thereby starving CDC of sales. STRETCH never
eventuated, but CDC was severely damaged for lack of sales. To
beat IBM the way Microsoft did, they learnt the IBM tactics well.
Such an announcement from MS could really damage iPod sales,
but MS has gotten away with anti-trust before.
Posted by Ian Joyner (66 comments )
Link Flag
"Hot" product?
Name one, just ONE, "Hot" product Microsoft has EVER
produced. It's just not in the company's DNA to do so. All they've
ever produced are products that are "good enough".

And, to reiterate a previous poster's comment, why is it ok for
Microsoft to have clawed its way to 95+% of the OS market by
bludgeoning competitors like a baby seal on a Canadian ice
sheet but not ok for Apple to dominate the mp3 player market.
Critics and analysts constantly harp about how consumers don't
have choice when it comes to the digital music market. iTunes
music will only play on iPods and Microsoft DRM'd music won't.
That's so unnnnnfaaaiir (eyes rolling).

Microsoft and the Music industry don't want the business model
that made iTunes/iPod succeed (let's call it pay-once-and-
keep). That's what consumers have decided they prefer.
Noooooooo, let's promote a business model that keeps the
customer paying and paying and paying and paying every month
for the subscription service.
Posted by lkrupp (1234 comments )
Reply Link Flag
How about the Xbox 360 power supply?
Some of them got soooo hot they fried themselves.
Posted by Norseman (945 comments )
Link Flag
MS Office, Win XP, Visual Studio, and many others
which the world is using. of course you'll have complaints (i am not saying they're perfect), but we wouldn't have those products if it weren't for microsoft.
Posted by mahurshi (180 comments )
Link Flag
re: not all subscriptions
I own a WMA device, however, (when I actually care to download music) I don't use a subscription service. All of those subscription stores are also 99 cent stores.
Posted by darrius3365 (98 comments )
Link Flag
The MS Business Model is "pay, pay, pay"
Let's face it folks. Microsoft, and even Bill Gates has said it in so many ways, that subscription products are the way they prefer to go. Look at that box MSN Tv or whatever is called. There's a monthly subscription attached to that.

iTunes has brought so much money into the hands of the RIAA. I've said this plenty of times, before iTunes one could go to any retail, or music only, store and get a whole cd for $0.99. Now, you can't. Now, you must pay the $7 or more that iTunes, in a great way, had a great deal to do with. So, why are they complaining.

Back to Microsoft. MS is making no money on the XBox, and wants to make sure it does it through the games. Fine. But, when was the last time MS released a product that was praised left and right? MS has gained so much market because of shoving their products down the throats of the sellers. "Sell my X product, or I won't sell you any off my catalog." We all know how Windows became so popular. It wasn't because it was so great. "Want to sell a pc with my OS in it, then all pc's you sell must have my OS." The bully has won.

But, things have changed and Gates and company are running around like headless chickens trying to kill Jobs on another win. Just like they stole so much from Jobs' OSs to put on Windows. Now they're at it, trying to kill iPod and iTunes.

I use Mac, Windows, and Linux. So, I'm not OS bashing here. But, outside my pc, I don't want anything to do with Gates and Co.
Posted by Dead Soulman (246 comments )
Reply Link Flag
Unlike Apple where everything is choice choice choice?
Lets forget about this pointless & ill conceived praise of the music publishing corporations' cash cow: iTunes and instead focus on another point in your rather unusual 'argument'.
The traditional IBM PC compatible market has always been one of 'it is what you make it'.
The choice has always been with the end user. So
to cut a very long but simple story short. The end user chose Windows, as opposed to all the other OS choices there were out there at some time or another.
Now the last time I looked what OS choices did I have if I wanted to buy an Apple PC - I couldn't even choose Windows if I wanted to. No, it HAD to be Apple's OS - no choice, PERIOD
At the end of all this it really doesn't matter if Jobs thinks HIS OS is the best.
It doesn't matter if Gates feels his idea of total Microsoft integration is the only way to be.
What matters is what the majority of technology consumers chose.
The alternatives were there all along... and they, the consumer, chose Windows.
Posted by psynrg (1 comment )
Link Flag
Stealing
Previous post:

>>> But, things have changed and Gates and company are running around like headless chickens trying to kill Jobs on another win. Just like they stole so much from Jobs' OSs to put on Windows. Now they're at it, trying to kill iPod and iTunes.<<<

Sure Bill stole the GUI from Jobs, and guess where Jobs stole it from? Xerox PARC developed the GUI and the mouse... They were forgot to patent it...

And while we're on the history lesson where did Xerox come from? IBM (who) sold the patent for the photocopier...

I'm not here to advocate for windows or apple. Both sides have their issues...
Posted by fishheadsoup (2 comments )
Link Flag
Remember the Xbox
I'm no fan of Microsoft products, but don't forget the Xbox. They
did manage to take a big share of the market in a relatively short
time. This could just as easily happen in the MP3 player market.
What surprises me, is why hasn't Microsoft leveraged the Xbox
to enter the market? Imagine something like a mini, hand-held
Xbox that plays videos, music and games... kinda like PSP. If
Apple wants to stay ahead of the curve, then leveraging content
is key. iTunes must stay dominant if iPod is to stay dominant.
That's why the Disney/Pixar deal is so important. It will allow
Apple even more opportunities to leverage content and build a
stronger iTunes platform. What no iPod competitor was able to
reproduce is an iTunes-level content portal. If Microsoft wants
to really compete, they are going to have to be a lot smarter
then they have been thus far.
Posted by (26 comments )
Reply Link Flag
Remember Modular Windows?
Anyone? LOL.

If Microsoft wants to truly compete in the MP3 player market, then they'll have to screw over many of their partners, developers and plaintiffs which they've already settled with.
Posted by cagerattler (72 comments )
Link Flag
Gates: Squash that original innovator and put a Windows logo on it
Appalling.
Posted by technewsjunkie (1224 comments )
Reply Link Flag
And even though
Apple is not a innovator either.
And this is coming from basically a Apple fanboy....
Posted by MidniteRaider (94 comments )
Link Flag
Right...
...apple invented Mp3 players.
Posted by FutureGuy (739 comments )
Link Flag
I'm for it
I would like to see Microsoft take Apple's MP3 player market share. The iPod should be replaced by a Microsoft product. I personally, cannot stand Apple and the iPod.
Posted by (5 comments )
Reply Link Flag
Well,
there's always people's opinions, and you are entitled to them.

My opinon - I personally cannot stand Microsoft, and cannot stand
Windows. So, seeing an MP3 player resembling an iPod with a
windows icon on it, would make my stomach turn.
Posted by NeverFade (336 comments )
Link Flag
And we would have....
A world of complete mediocrity.
Posted by Gromit801 (386 comments )
Link Flag
What else is new?
What else is new?

They had 4 years of strategy to overtake the Ipod.
What happend? Nothing, as far as I know.
Absolutely nothng. So now that Bill Gates makes a
grumble about it , their only doing something about it
now!! What a joke!?! and where is Steve Ballmer in all
of this?

If Microsoft is suppose to be atuned to its customers
needs . Why didn't they think of this digital music
strategy in the first place? Or why don't they take the
lead, in actually building something new instead of
taking the strategy of stealing other companies ideas.

I just think Microsoft talks alot yap!! I shouda coulda
woulda.. Instead of actually sitting down and creating
something different. But giving their history, their
company was built on the backs of other companies
ideas. I'm not at all surprised by any of their product
moves they are too predictable and boring.

I think their strategy should be focused more on security
and viruses. I don't think its a good business decision
for them to get into the market given their brand
popularity. It will just flop.
Posted by ServedUp (403 comments )
Reply Link Flag
But giving their history, their
"But giving their history, their
company was built on the backs of other companies
ideas."

Did we forget that Apples own operation system was at one time programed by Gates and crew?

Did we forget that Apple's own GUI operating system was built on Xerox Parc which itself grew out of NLS?

And that Microsoft won the battle of the 'you stole my GUI' fight: "This led to a long legal battle between Apple Computer and Microsoft, and ended with an out-of-court settlement. In this settlement it was stated that Microsoft would be granted access to, and allowed unlimited use of, the Macintosh GUI."

All companies that are succesful to it by copying ideas of smaller, less capital capable companies.

I don't care one way or another...but please get the facts straight...Apple has done as much 'copying' as any other successfull company (..sometimes even illegally...Visicrook any one?)
Posted by KsprayDad (375 comments )
Link Flag
Gates: And we will lose
n/t
Posted by NeverFade (336 comments )
Reply Link Flag
Remember what Office did to Word Perfect & Lotus?
People laughed when Microsoft Office challenged the competition. They laughed when they saw Microsoft's early versions of Office. But they're not laughing now. They're out of business.
Posted by lingsun (478 comments )
Link Flag
I dont get the love of the ipod...
Its nice looking device but my battery died way to fast on my 3 gen Ipod 20gig.

The first versions of I-tunes for Windows was super buggy especially with the firewire connections.

I-tunes still can NOT monitor folders like Media player can. On a home network with a server where all of my familys music is stored I-tunes worthless. Other members of my house hold copy music to the main folder and my I-tunes would never see it&..totally lame.

My Creative Zen Micro might not look as slick as an Ipod but it works just a good, plus radio, Outlook Syncing and WMA compatibility&..which all of my audio gear supports in my house and my cars. Apples format is supported by nothing outside of their products.
Posted by Lindy01 (444 comments )
Reply Link Flag
Good for you....
... So enjoy your Zen and quite complaining.
Posted by Earl Benser (4342 comments )
Link Flag
Apple is a religion to some people
Apple is a religion to some people. They love everything Apple and hate everything non-Apple. It's the only way to explain it.
Posted by lingsun (478 comments )
Link Flag
Let's see..
Goto preference in iTunes and tell iTunes where to look, and
either do an import, or use what ever file as the main iTunes
folder. If everyone on your network is using iTunes, and lets
iTunes share, you can "share" each others music. I also sync my
email, contacts, calendar, photos, and anyother text I want to
sync with iPod. Since I do not have and iPod connection, or and
input on my cd player, I have to use iTrip. If I want to use my
iTunes music outside of the iPod, I can always burn a disc. So
you are right, Apples' format may not be supported outside of
iPod, but the option is to convert it to other formats, while still
in iTunes. Granted, I am using Apple computers, and these
capabilities may not be available to your Windows system, but
somehow I doubt this is the case.
Posted by cashaww (81 comments )
Link Flag
Lol!!!
Who is complaining Eaaaaarrrrrl?? Only stating that I dont get the I-pod hype other than the device is slick looking.

But I forget this is News.com and if you dont hate Microsoft your not welcome and you get flamed by people named Earl&.wasnt there a Dixe Chic song about a guy named Earl?
Posted by Lindy01 (444 comments )
Reply Link Flag
Say hello to the competitors...
Now finally I understand all the things that Microsoft is doing in this period...

If you remember the new Xbox360 support ipod but you can't read with the xbox the songs that you bought on Itunes...
Then we will have the new Windows Vista...

My speculation is:
- Vista will include an "iTunes-like" music store in bundle with windows...(that means a new windows media player totally integrated with windows...do you remember the browser's war??)
- Xbox360 will be "natively" compatible with Vista to share music...
- a brand new "ipod-like" from Microsoft will be release...obviously compatible with Xbox360, Vista ...
- and remember that probably xbox will be able to read the Microsoft music store files...
- do you remember that microsoft want also to release "windows live services"...add this with xbox live and with the new music store and you'll have a big-one-application totally integrated...say hello to all the competitors...
Posted by MatKin (2 comments )
Reply Link Flag
I think that someone already
has software to do this now (read iPod song's/playlist's, controlled
through menu's on Xbox...supposedly the same as you would see
them on iTune's)...And I think that you would probably need a
product to compete...or am I wrong?...or are you suggesting that
you walk around with an Xbox in your pocket?...(need a pretty long
lead for that)...
Posted by T25 (24 comments )
Link Flag
Steve Jobs said it...
He said that this would happen. That Microsoft would have to
create its own Music/Media Player. I think Steve wants to crush
Microsoft playing on the same turf...

And this time we will really see how pointless Microsoft design
is, always focusing on features and never os the customer. For
them they are the thing that operate their devices...
Posted by irisfailsafe (35 comments )
Reply Link Flag
This won't be MS's first "challenge" to iPod/iTMS
Didn't MS announce its own music service well over a year ago?
Guess that didn't quite work out. Now, they've partnered with
MTV to create URGE. MTV still has something to do with music?
Who knew? But judging from its reception so far, it's another
bomb. Mabye they'll get it together with a player of their own,
but I wouldn't count on it. They need not only a player, but an
easy-to-use service and GREAT software. Contrary to MS
apologists' beliefs, great software and MS do not go hand-in-
hand.

You know what's REALLY funny. MS is thought of as a software
company and Apple a hardware company. But, guess what,
Apple makes better software than MS!!! That's freakin'
hilarious!
Posted by The_Raven (50 comments )
Reply Link Flag
I say
Bring the challenge. This will not only help push Apple along in
improving their products. It will also push other companies to keep
competing with Apple. As long as they try to out due each other, it
can only benefit us, the consumers.
Posted by MidniteRaider (94 comments )
Link Flag
Everything is in need of a challenge....
They can challenge iPod, but more people need to challenge
Windows also. They both go hand-in-hand.

Only when there is competition, are there great improvements that
benefit the consumer.
Posted by MidniteRaider (94 comments )
Reply Link Flag
A windoze pod... I hope not.
Oh please, windoze has enough problems keeping their os fixed.
Posted by solarflair (35 comments )
Reply Link Flag
Microsoft has wrong focus
I disagree with the 'competition' bromides. Often, that is all talk
of competition is. There is a lot more talk of competition than
there is actual competition. For example, it would be nice if
Apple achieved 10 percent computer market share by the end of
the decade, and Linux for desktops doubled, to say three
percent. But, because the habits that determine what OSes
people buy are already in place, that is a challenge, at best. The
forced marriage between most computers and Windows settles
the issue for most consumers, even those who mouth bromides
about competition.

I think Microsoft should accept Apple dominance of the MP3
player and digital download market and move on to the Next Big
Thing. We can argue over what the NBT will be, but that is
where Microsoft's attention should be, not chasing after Apple in
the MP3 player and digital download markets. Apple has
accepted its role as a boutique computer maker, though it would
like to improve its market share. Microsoft should do the same
in regard to the iPod and digital content, accepting that it and its
partners will continue to be an afterthougt to most consumers.

I feel embarrassed for the persons who sought to challenge Earl
Benser regarding Apple history. I'm pretty knowledgeable on
the topic myself, but I am always impressed with his memory
and depth of knowledge regarding even obscure aspects.
Posted by J.G. (832 comments )
Reply Link Flag
Never accept
Anything. MS (like Apple in the OS space) should never sit back and accept where it is.
While Apple gets lots of applause for things it didn't invernt(MS3 players, the GUI, downloadable music) it did add to those things, as should any company attempting to make somthing of itself.
True invention or the next step? We would still have Sony Walkmans if everyone just "accepted"
Posted by catchall (246 comments )
Link Flag
Next Big Thing?
Microsoft has never been a driver for the next big thing. This is just
another let Apple work that out and then we'll pinch their market.
Apple doesn't see itself as a boutique computer maker - Unix is
pretty mainstream.
Posted by Ian Joyner (66 comments )
Link Flag
Anyone Remember OS/2
Microsoft conned IBM into the OS/2 development then along
with IBM convinced Lotus, Borland and all the other companies
they they had to put all their energies into making their products
work for OS/2. All the time Microsoft was working on Windows
and porting the GUI applications they had developed for the
Macintosh to work on its new operating system.. When Windows
was released they had the only applications ready to go. The
others were caught without product and it gave a huge
advantage to Microsoft.

Also, does anyone remember the debate that the GUI was not for
real computer users. The command line interface was SOOOOO
superior......Microsoft's line until Windows was put out.
Posted by georgiarat (255 comments )
Reply Link Flag
I still have an unopened copy of Windows 1.0
Microsoft did not think that Windows was the be all end all until 3.0/3.1. Up until then, they weren't even evangelizing it hard.

Microsoft's line held fast, or at least in the same general direction, until Windows 3.0+.

Prior to Win3.0+, Microsoft kept a low profile about porting apps and such.

I lived and breathed it during those times.
Posted by cagerattler (72 comments )
Link Flag
www.thebignoticeboard.com
not a hope. gates and co are finally recieving their just desserts.
Posted by thebignoticeboard.com (23 comments )
Reply Link Flag
haha...Gates is challenged...
Good luck trying to pry me away from my iPod!
Posted by microsoft slayer (174 comments )
Reply Link Flag
Microsoft losing focus everywhere
They're losing to Google, Apple, Yahoo, AOL, and just about every Web 2.0 start-ups out there. The MS levee is going to break!!!
Posted by microsoft slayer (174 comments )
Reply Link Flag
It's called competition...
... and they're actively competing. I don't see any reason for a new business area to cause much loss in focus. In the first place, Microsoft has enough money to fund new interests. If they turn out to be profitable, good. Otherwise, learn...
Posted by Mendz (520 comments )
Link Flag
Too many fingers in too many pies makes bad pies
Microsoft is in a greedy panic. It's not enough for them to have the dominant desktop O/S. They also want to challenge Apple's iPod and iTunes (portable digital audio), RIM's Blackberry (wireless email), various Google initiatives, and so on.

The traditional Microsoft business model has been innovation through acquisition - a small company produces an innovative product/service, and Microsoft acquires the company and then integrates the product/service into their O/S and/or hosted services. This has happened with disk defragmentation (Diskeeper), spyware (Giant), webmail (Hotmail), web groups (ListBot)etc.

But this business model falls apart when Microsoft is faced with true innovation that they are unable to acquire. With the exception of the Xbox, every foray Microsoft has made to try to compete on a level playing field has failed (and I'd suggest that the Xbox wasn't on a level playing field due to Microsoft's ability to promote it above and beyond Sony etc.)

I think if Microsoft continues to try to be everything for everyone, to have a stake in every market share, their primary business (O/S) is going to suffer. Microsoft should focus on making Vista a decent O/S or else they are going to be in for a big surprise when Apple makes OS X available for the PC platform.

Bruce
Posted by bahead (27 comments )
Reply Link Flag
Lest We Forget...
Apple has a near monopoly on digital music, around 70%. If that were Microsoft the headline would be "The Evil Empire Does It Again". Apple's IPOD+Itunes combo reminds me of AOL. People love it because they enjoy the hand holding and everybody else was doing it. There are people out there who don't necessaily care about getting ALL their digital content from Itunes, which also means you must play it on an IPOD. Compact Discs as a music consumption medium worked well cause I could play it on any player from any manufacturer. Apple dreads something like that happening cause then their monopoly and cash cow goes away. The Apple+Itunes model will not dominate for long, i admit it will be relevant, but people ultimately need choices and portability, that is going to be Microsoft's play.
Posted by seankirk (29 comments )
Reply Link Flag
Quite probable....
... but given the opportunity, what are the ca=hances that MS will
do it right??? This is a time to listen to the consumers. And MS
historically has had no ears.

MS's maneuvers will be interesting to watch.
Posted by Earl Benser (4342 comments )
Link Flag
Historical analogy: "We will bury you"
Nikita Kruschev: "We will bury you"...

<yawn...>

Build a better product (easier to use, more reliable, etc) and then
we'll see.

dave
Posted by deemery (61 comments )
Reply Link Flag
"Compatible with Microsoft Software?"
Uhhh....iTunes works with Windows.
Posted by open-mind (1027 comments )
Reply Link Flag
iTunes is not a Microsoft application
I believe he (Gates) is talking about compatibility with Windows Media Center technology.

In any case (this is not directed at you Paul R), everybody incorrectly thinks that MS doesn't innovate and just copies or "steals" other's ideas. In the case of Media Center, the shoe is on the other foot as it were. Apple is "stealing" the idea for it's media software from MS...
Posted by MAA_Elvis (5 comments )
Link Flag
 

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