Zune: Microsoft confirms portable multimedia player is on the way
The first implementation of this will be the portable music player and digital music service....Additional Zune-branded devices will follow, including a portable video player and, potentially, a portable game device....the initial music device will contain a hard drive and the much-discussed Wi-Fi connection for wireless Internet access....Zune users will be able to view each other's playlists, recommend music, and sample tracks in what Stephenson describes as a multifaceted music discovery experience. This capability will extend to the Xbox 360 game console, PCs running Windows Media Center, and mobile phones using the Windows Mobile operating system....The article also suggests that the existing MSN Music service will not be part of the Zune ecosystem and that, while it will be supported by Microsoft, it will probably be "left to die on the vine."
So, in addition to keyboard, mice, and XBoxes, Microsoft is adding more hardware to its portfolio. The first thought that comes to mind giving the connectivity these devices will have is how much easier it will be for content providers to work the DRM levers (for example, revoking a device's ability to playback a certain song). The more such devices can make contact with the Internet, the more the DRM system can work in real-time.
The second question that comes to mind is, "What about all of Microsoft's PlaysForSure hardware partners like Creative Labs, Samsung, and iRiver?" Their entire strategy is built around the notion that Microsoft is creating an ecosystem that each can equally play in and that Microsoft won't be competing against them. But if Microsoft is coming out with hardware, then something has changed. Either Microsoft can't count on these partners to help it compete against Apple's iTunes and iPods, or, the hardware it's coming out with is more of a reference design that its existing partners can build from.
Only time will tell.