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Monday 10th July 2006
Microsoft quells iPod-killer rumours 11:33AM, Monday 10th July 2006
Microsoft has moved to quell rumours that it is about to introduce a portable player and downloads store package in an attempt to crack the Apple iPod/iTunes axis-dominated digital music market.

The company told the BBC that reports that it will unveil the new offering in time for Christmas are mere 'speculation and rumours'.

However tech blog Engadget believes that it is 'an open secret that Microsoft is going to shift away from its current model and go straight after the iPod with a portable media player of its own'.

Moreover, the blog claims that Microsoft plans to spend a chunk of its $35bn cash reserves on a free download from its own store of every song any customer has previously bought from iTunes.

'They'll actually scan iTunes for purchased tracks and then automatically add those to your account,' engadget claims, citing an anonymous source. 'Microsoft will still have to pay the rights-holders for the songs, but they believe it'll be worth it to acquire converts to their new player.'

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