Apple and Microsoft to fight hammer and tongs

Microsoft's not-so-secret sauce will be to have Wi-Fi built in, according to a report in the New York Times, here.

Another nice-to-have will be a better screen than the iPod, capable of handling high-quality video, the report said.

A separate NYT report that tipped up here, suggests Microsoft could also offer the ability to swap music with other local devices.

What's still not clear is whether it will go it alone Xbox-style or license its design PC-clone style.

As for Apple, the 800lb gorilla dressed head to toe in Diesel of the sector, it has registered user interface designs that suggest the click-wheel could be ditched.

AppleInsider reports on designs for possible Nano and video iPod devices. The blueprints hint at voice, touchpad and handset-like keypad options for input. µ