If the New York Post and its sources are to believed, then a straight head-to-head battle between Apple and its iPods and Microsoft and a yet unnamed and unconfirmed player and digital music service is looming. Just how Microsoft’s technology partners including Napster and MTV might feel about such a move could be interesting.

On-off licensing talks between Microsoft and the music labels are back on again and this is being taking as the flare going up on a Microsoft service/product launch, which is rumoured to be a video player also. Looks like we’re in for a VHS/Betamax battle all over again – you decide which is which.

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