Newsweek magazine has a short "web exclusive" interview with Apple co-founder Steve Jobs, evidently from MacWorld. The interesting bit is at the end:
Q: At the Consumer Electronics Show last week, there didn't seem to be any iPod killers.
A: The problem is, the PC model doesn't work in the consumer electronics industry, where you've got all these companies and some does one thing and another does another thing. It just doesn't work. What's going to happen is that Microsoft is going to have to get into the hardware business of making MP3 players. This year. X-player, or whatever.
Comment: Microsoft has certainly had a taste of Apple-style "controlling the experience" with the Xbox, where MIcrosoft did the servers, software, online service, hardware devices, marketing and branding (but has yet to make any money out of it). This was a straightforward play because Microsoft tried all the device manufacturers and couldn't get multiple sources to support a games console -- not surprising when the market requires standard consoles to launch at loss-making prices. It's not straightforward when there are a dozen or more companies making Microsoft-based portable players, including Creative, Toshiba and LG Electronics. Unless done co-operatively, a Microsoft X-player could put some important noses out of joint, or worse, spook its all-important PC manufacturers. (Music players are small beer compared with the $250 billion PC business.)
"We've got a lot of work to do," Microsoft CEO Steve Ballmer said in an interview with CNET News.com. "On the PC, our stuff is still the most popular stuff out there. It's not true in the portable device space, and I think we have to do some stuff to simplify the experience."
Sure, but what?
