Reuters' Yinka Adegoke reports today that Microsoft plans to launch a Wi-Fi-enabled MP3 player to compete with Apple's iPod by Christmas.

"The new player, which Microsoft Corp. has been touting to record companies in the last few weeks, will let users download music and videos over the air, according to one source, a feature which would give it an edge over the iPod," Adegoke writes. "Microsoft Corp. has also been showing a new media software, developing an application akin to Apple Computer Inc.'s iPod/iTunes integrated ecosystem, according to another source."

Gartner Research analyst Mike McGuire says Apple's ability to create and maintain that integrated ecosystem is what has kept it unique -- others have tried to compete, but they've failed. "Sony had a similar approach," he says. "They owned content, devices, software and an online store and it hasn't enjoyed nearly the success Apple has. It's also about how you execute the plan."