Business Week confirms that Microsoft has formed a research team to look at the possibility of developing its own iPod-like digital music device. However, it's not all about nicking the iPod. The article maintains that were Microsoft to bowl into the .mp3 fray, "any Microsoft media device would have to leverage the company's most significant consumer strength, video gaming." You know what that implies, right? A handheld.

The Bug in Microsoft's Ear [Business Week]

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