Gadgetell | Tech News, Reviews, and Interesting Things

The Sony PSP is probably the hottest all around portable media device. The Nintendo DS is the most popular portable gaming system. Moreover, I do not need to even mention the iPod (specifically the 5G model with video).

While Microsoft has focused 80% of their time on software and probably even less than 20% of their time on developing hardware (Xbox primarily), Peter Moore, head of the Interactive Entertainment Business at Microsoft, hinted at a change. The Xbox was a stage for the Xbox 360, opening a path for Microsoft to enter the living room. Now that they are there and expected to grow, Microsoft is looking to extend their reach. What if you had Microsoft with you 100% of the time?

Moore talked about that in a recent Business Week interview. Peter Moore said that the company is considering entering the portable the portable digital media market with a device. According to Business Week, “the software giant is working on plans to develop its own portable digital media device to rival the iPod, rather than just providing technology to partners.”

Microsoft has recently said that they are disappointed that no one has created an “iPod killer” and may have to do it themselves. Additionally, Peter Moore said that the new device “can’t just be our version of the iPod,” so in addition to playing music and videos, a Microsoft device would probably include games and possibly internet. Microsoft would probably use the Xbox brand to market the gadget. “I think the brand is an opportunity,” Moore says.

In the past when their have been talks of Microsoft entering the hardware market, insiders and analysts have predicted that they would ruin Microsoft’s relationship with its customers (hardware manufacturers) and cause them to switch suppliers (i.e. Creative uses another format other than WMA files and MS infrastructure in their audio players if MS creates a MP3 player).

I really don’t know what the outcome will be. Will Microsoft take the risk and enter this new market? Is it really a risk for them? Can customers really just switch software providers just like that? Is Xbox causing in a shift in Microsoft’s core strategy? Do they like the Apple idea of creating the software and the hardware, A-Z?

We will have to wait and see, but with the launch and success of Xbox and Xbox 360, paired with their strong opinion on next generation disc formats (only supporting HD-DVD) the tech landscape may be changing in a way no one could have predicted.

Read [Playfuls]
Read [Engadget]

Image via Joystiq