And I thought the rumor about Microsoft creating an iPod rival was long gone. Apparently, it isn't...and that rumor's back, providing us with some believable info on Microsoft's plans for this Apple iPod rival. "Sources" close to this matter are saying that the company does have a plan to start the sale of digital music and video players by Christmas.

Since it's aiming to compete with the iPod - which inevitably means also competing with the iTunes Music Store - Microsoft plans to have a wireless feature which will enable the downloading of videos and music over-the-air.

Aside from this, the company has also been reported to be talking with several record companies these past weeks and has been said to be developing a media software application similar to the integrated ecosystem of iTunes for this rumored media player. If Microsoft is going to push through with its plans to go head-to-head with Apple's iPod, it really needs to build an "integrated seamless ecosystem for digital media" like the iTunes.

We'll see soon enough if this rumor turns out to be true.