It is very likely that Microsoft will do something to mess it up so I say the iPod will win.

Ipod is already the market share leader, so I don't think microsoft is just going to come in and take over...

I don't think Microsoft is able to complete against Apple in Mp3 player market. But I would like to see Microsoft + Creative against Apple. That would be a big fight in the market which would push Apple better in producing the upcoming players.

Microsoft are late as usual. They can't even steel other peoples ideas quickly.
As for the other additions to the standard ipod. Apple are not going to stand still either, there is also a rumour that Apple have a widescreen video iPod under development. And, Chief Financial Office Peter Oppenheimer has suggested an iPod phone could be in development, and so it goes on.

IMHO Apple are more likely to say very little and pull a great product out of the bag. MS are more likely to over sell another lame uncool lump of junk. That's just my humble opinion.

Anyhoo even if they were to develop something of interest in the MP3 area, they've already missed out on the biggest part of the action.
Ipod killer indeed. The ipod is almost old enough to retire. :lol:

Hmm reminds me of a story that goes a little something like
http://www.daniweb.com/blogs/entry659.html
This is old news.

They do this all the time, microsoft just has to steal everyone's ideas. In my opinion, the only few good things that have come from microsoft are the xbox and windows.

Microsoft's hardware track record has generally been good.

The problem with trying to muscle in on the iPod's territory though is that an iPod isn't just a music player, to the unwashed masses its the only music player. Its a symbol.

They are incredibly easy to use compared to other players I've tried; my friends have creative, archos and rio ones amongst them, all do more stuff than my 2nd generation iPod, play radio, have mic and line in ports, removable batteries etc etc.

The iPod though, is easiest to use and does what people want an mp3 player to do - play mp3s. And its best looking by a MILE.