Microsoft, NTT DoCoMo and Toshiba to develop iPod rival

Software from Microsoft, the music player from Japanese companies and subscription music download service from Napster Japan?

Apple's dominance in the music player industry is under threat - at least in Japan. Microsoft is teaming up with eight Japan companies to develop an iPod rival. The companies taking part in this mega team-up include NTT DoCoMo Inc and Toshiba Corporation.

Through the deal, Microsoft will offer audio players and content which is compatible with Windows Media Technology operating system, the Redmond. Microsoft has said that the companies who will provide the content will be Napster Japan, NTT Communications Corp and Aoyama Capital Co.

Japan's internet music download market is worth 34.3 billion yen and Apple has a clear dominance in the market. DoCoMo is Japan's biggest mobile phone company and through the deal with DoCoMo and Toshiba, the electronics company Microsoft expects to have a better share in Japan's music industry.

The product developed by Microsoft and these eight companies, the portable audio/video player, will be specifically aimed at the Japanese market. The software portion of the product will be done by Microsoft itself, while the Japanese companies will make the player.

A new handset from DoCoMo with software from Microsoft, which will allows users to transfer music ficonsumerles in Windows format from PCs to the handset is being planned by DoCoMo.