Bloomberg is reporting that the much talked about, but never confirmed iPod killer from Microsoft is set to hit shelves this Christmas.

While the wire-service story doesn't quote a source, they report that the music and video player from Msoft is set to come out this Christmas. Instead the story is based on "people briefed on Redmond, Washington-based Microsoft's plans."

More interesting is their report that J Allard is overseeing development of the device and that Robbie Bach is supervising.

No mention, in the story, if the device will have any gaming features.

Microsoft's device will be able to connect to the Internet and other devices using the wireless fidelity, or Wi-Fi, standard, which iTunes doesn't have, the people said.

Microsoft is also promising the screen will have a better quality picture than the iPod, according to the people, who saw the slideshow Microsoft is using to promote
the device.

The music and TV companies are interested in working with Microsoft in order to blunt Apple's power in the market, according to people close to the media
companies.

I spoke with Microsoft shortly after the story hit the wires and got a big fat no comment. It seems obvious that some sort of music, video player is on the way. The real question, it seems, is if it will be the fabled Xboy. Brian Crecente

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