Shy, retiring software behemoth, Microsoft, looks set to branch out in new directions as it attempts to suck up every last cent of your discretionary dollar.

Bill's billions have now been aimed at the Apple-dominated portable music and video market, with Microsoft preparing to launch its own music download service, says the Sydney Morning Herald. According to the story (and a fair swag of unnamed sources "familiar with the plans" - hate that phrase), the company will also be releasing its own range of MP3/video players, as it seeks to tempt customers away from the market-leading iPod.

Although this seems a change in Microsoft's direction, it's really all of a piece with the company's push into converged consumer technology with such products as Windows Media Centre and the entertainment-centre-in-a-box marketing of the Xbox 360. And, of course, Microsoft already has a music software platform in the shape of its much-derided-but-actually-pretty-good Windows Media Player.

Microsoft has a lot of catching up to do if it wants to build its own digital player, so we're not expecting that much from the first few products. We'll be very interested, however, to see how Microsoft gets on with its own version of the iTunes Music Store, particularly if it decides to open in NZ. Without the competition of iTunes (which Apple still can't be stuffed opening here), Microsoft would have a good shot at actually making some money in Godzone.

Microsoft is keeping shtum on pretty much all the details at the moment, so expect to see the first fruits of this labour some time after the company gets round to, um, planting the seeds.

Read the full Sydney Morning Herald story here (registration requ'd)