Sometimes I am amazed at how some tech gossips get carried away with reporting, just yesterday I was listening to Angels & Demons and part of the book talked about how the media craves apocalyptic headlines.

Case
Microsoft Developing iPod Killer

umm, guys last december, Creative unveiled Vision:M video the iPod killer. Apple's ipod is very much still alive.. Creative failed so miserably, they have resorted to lawsuits.

According to a Reuters report, Software giant Microsoft Corp. is laying the groundwork to compete against Apple Computer Inc.'s iPod digital entertainment device and iTunes service, sources familiar with the discussions and plans said on Friday.

Microsoft has held licensing discussions with the music industry to create its own music service, the sources told Reuters.

The Redmond, Washington-based developer of software that runs most of the world's PCs is also demonstrating an entertainment device that plays videos and music, the sources said.

That's all great, but as Google's CEO Eric Schmidt recently said on Gbuy

"It makes no sense to go into businesses that are occupied by existing leaders," he said. "We want to solve new problems in the payments space."

So just maybe if Microsoft could solve the problems with portable music they would be going in right direction.