Brier Dudley from Seattle Times has hinted about MicroSoft’s plans for a new MP3 player with great features like Wi-Fi and internet connectivity. This is what he has to say..
" Microsoft is indeed developing a digital-media player to compete with Apple’s iPod, and there’s much more to the story.

A few details trickled out last week from music companies that Microsoft is lining up to support the device. Microsoft isn’t commenting, but I was able to piece together a broader picture with some research, reporting and information from a source close to the project. What’s being developed is actually a complete line of Xbox-branded digital-media products, including a device that plays media, a software media player and an online media service.

The project, or at least part of it, is referred to internally at Microsoft by the code name Argo — a reference to the huge warship used by the hero Jason in Greek mythology.

Argo is being developed within the Xbox group under the leadership of Xbox co-founder J Allard. His team includes people who previously worked on MSN Music, an online music service that had a promising debut in 2004 but fell victim to Microsoft’s dithering over its music strategy."