Exclusive: Creative to build 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."

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