A Year Ago: Exclusive: Creative to build MP3 player

Creative Labs has confirmed it is to enter the Internet music arena with the launch of its own MP3 player.

The firm denied it would follow arch rival Diamond Multimedia's lead with a dedicated MP3 player. Instead Creative will make a player to handle "all formats" according to Eion Leyden the company's European brand manager. "MP3 is not going to rule the roost," Leyden said, "we could do a Rio type product but that would be a short-sighted." Leydon hinted the player may even develop into a car audio system.

On the future of the music industry, Leyden predicted the trend towards Internet music would eventually lead to price cuts on the high street: "The music industry should definitely worry about the Internet. Soon there will be official sites to download tracks and in a few years time, we will see a significant shift down in price for retail CDs."

Take me to the MP3 Special