Ok so that latest news on the web is that Microsoft is coming up with an iPod killer which people are calling xboy. And reffered to by Microsoft as Argo (also rumours of it being called Zune?). Now there are also rumors that the release of Argo will also incorporate a online music store much like iTunes (just so you know Apple didnt develop iTunes they acquired it), and that they are already trying to get deals with major tv networks for show content. The other big thing that is floating around is that they argo is going to have built in wifi. Chyea thats sweet I rarely buy music from itunes but I mean if im out on the road somewhere and dont have access to a computer I would be much more likely to actually pay for a song.
Now a lot of people are probably saying omg the ipod is so great they can never beat it. In my mind they can, probably very easily. The iPod's popularity is because of music stars carrying it around in commercials not becuase of its actual qualities. Here are somethings that they could improve on:

1. Price - Like most apple products the iPod is expensive, if a company like dell or creative can offer the same product for much cheaper.
2. Durability - iPod's are prone to breaking. Hard drives often freeze screen gets scratched (like every 3 secs), and dropping your ipod can most of the time mean almost certain death.
3. Sound quality - in terms of sound quality iPod's are decent, but they arent really that great unless you encode at the highest bitrate. In the experience I have had with the Dell Jukebox and Creative zen products was one of better quality sound.

I think Microsoft stands a good chance only thing im really waiting for is the first (official) images. And if Microsoft cant really get out there in the market a partnership with creative or dell would prove very fruitful.

here is a possible image of it I found on engadget
http://www.engadget.com/media/2006/0...rgo_player.jpg