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Is iTunes Music Store more of a threat to Microsoft than any hardware Apple might release?

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Is iTunes Music Store more of a threat to Microsoft than any hardware Apple might release?

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ADY: You’re going to think I’m crazy, but I believe iTunes helps Microsoft and all technology companies. Apple truly cracked the nut with the content owners. Is the iTunes video model the right one? I don’t know. I’m super curious to see how the public makes the shift from traditional video enjoyment to less straightforward ways to do it. I know I’ve been spending way too much time finding, getting, transcoding, and moving video content, and very little time watching it since I got the new iPod and the Zen Vision. Today, I read the poll results on iLounge regarding video content. These are iPod’s biggest fans and 70% said they didn’t have plans to download video from their store. Still I commend them for striking these deals with the studios and I’m sure they’ve got more surprises to come. PVR Wire: Where do you see MCE heading in the next five years? Is Microsoft going to move away from desktop software and try to conquer the home media center market or is stability more important tha

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