Microsoft will reportedly announce its own iPod killer gadget, Zune, today.
A report claims the device announcement is scheduled for this morning. The device is expected to ship later this autumn.
Microsoft also plans to emulate Apple's end-to-end business model with the announcement of its very own music download service, which uses Microsoft's own DRM (digital rights management) system.
However, Microsoft isn't infallible. A recently disclosed vulnerability in its DRM system hasn't yet been repaired (as of 9pm yesterday), leading giant UK satellite broadcaster, Sky, to temporarily shut down its broadband-based movie download service.
Microsoft has pledged to invest millions in the coming years in its attempt to take on the iPod's market lead.
Throughout its history, Microsoft has exploited its PC market lead and deep pockets to attempt to dominate every technology area it plays in, often running foul of local antitrust regulators as it attempts to imprint its DNA on these myriad sectors.
Apple announced new higher-capacity iPods, new nanos, new shuffles and iTunes 7.0 (with movie download service and games) this week. It also explained a new device designed to let users stream movies effortlessly from their computer to a TV.