So we heard about the Microsoft $50 iPod-killer rumors yesterday, too, but held off posting anything because it just sounded so out there, and wanted to get some clarification. Glad we waited, because Engadget has dug up the transcript of Microsoft's Yusuf Mehdi and it's clearly being misinterpreted by the different sources. I mean, read this. You've got to be trying really hard to sift a $50 iPod killer from Microsoft out of this.

I ve spent time with a bunch of hardware manufacturers who will launch hardware products when we ship our service that will look and feel as good as the iPod product.

...

It s for people who really want to sort of look at music videos and not just music, which is very powerful, we ll have that offering. And then a bunch of devices in between, little ones that cost 50 bucks and you can go running with.


Read [Engadget]