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Oh joy, two Microsoft gotchas in one day!

PC Magazine, June 2:

Microsoft reps have denied recent rumors alleging that it has partnered with a number of Japanese consumer electronics companies to develop a device to compete in Japan with Apple's iPod. "Due to translation issues the announcement was misconstrued to sound like Microsoft was developing a rival to the iPod; that's just not the case."

Reuters, June 16:


Microsoft Corp. is developing a music and video device to compete with Apple's iPod and creating its own music service to rival Apple's iTunes, sources familiar with the plans said on Friday.

Great, Microsoft learned one thing from Apple: how to lie through your teeth.

Microsoft Denies iPod Rival Rumors [PC Magazine]
Microsoft developing rival to iPod: sources [Reuters]