Microsoft is planning a digital music and video player to rival Apple’s iPod.
The technology giant is planning to launch the player in time for the start of the holiday shopping season in the US, around November.
Rumours also suggest the company is developing a wireless features for the player, so users can download content on-the-go.
Microsoft is also planning to launch a similar service to iTunes, meaning the company will have interests in music hardware, software and services alike.
The reports emerged as Microsoft unveiled the product to record companies over the past few weeks.