One of Microsoft's spokespersons denied the company demonstrated a portable music device capable of wireless networking to music industry executives, calling a report from Bloomberg and AP "speculation and rumors".
However, the spokesperson stopped short of denying a demonstration of such a device from someone took place.
"For the stories you are seeing," the spokesperson wrote TG Daily, "they are based on speculation and rumors and, as such, Microsoft didn't participate. We don't have anything to announce at this time."
On Wednesday, Bloomberg reported that Microsoft had hired a music industry executive, Chris Stephenson, to negotiate for rights to distribute digital content over the company's own platform. The news was attached to a report whose headline stated Microsoft is planning to release a branded MP3 player device of its own, with WiFi capabilities, before Christmas. However, many of the substantiating facts in the report appear very similar to a March 2006 blog entry by San Jose Mercury News reporter Dean Takahashi, who has been researching the history of the Xbox 360 and other Microsoft hardware device projects for a forthcoming book.