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The most popular software company in the world is apparently going to make another slight change in direction. Microsoft’s first jump was with the Xbox and Xbox 360. While the first generation was good but no huge success, the 360 has thus far been a major hit (though the PS3 and Wii have not yet been released and the supply issues). We reported that Microsoft has a digital-media player in the works to try and knock the iPod and now the details have begun to flow.

What’s being developed is actually a complete line of Xbox-branded digital-media products, including a device that plays media, a software media player and an online media service. The project is currently code name Argo (a reference to the huge warship used by the hero Jason in Greek mythology) and is run by Xbox co-founder J Allard. Bloomberg News reported that the device is expected to go on sale by Christmas. It supposedly also has built in Wi-Fi not only making it one of the first of its kind but also putting it in the ring with Sony’s PSP and Nintendo’s DS.

I still am not convinced that this product can outshine the mighty iPod or do any better than the hundreds of other portable media players. MS might also be shooting themselves in the foot by developing a product that competes with their customers who produce their own PMPs based on Microsoft’s software.

We will continue to report the details as they emerge. The picture above is from Engadget, who claim it is a prototype of the Argo from a Microsoft insider.

Read [Seattle Times]

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