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  Microsoft and Apple To Feud Over Xbox 360-iPod Compatibility When it launches on November 22nd, 2005, the new Xbox 360 will come ready to interface with your iPod, and Microsoft has not shied away from talking up the connectivity. However, will this land them in hot water with iPod manufacturer, Apple?

Microsoft built in the iPod compatibility to their new XBox 360 game console without any previous communication with Apple. This compatibility will allow iPod users to plug their iPod directly into their XBox 360 and access their music or upload music files to their XBox 360 for use in games for the console. However, the XBox 360 will not be able to stream songs purchased from Apple's iTunes Store because it did not enroll in Apple's "Made for iPod" program, which does not grant them access to the licenses used to stream the audio.

Microsoft admits that they do not have an "official" relationship with Apple, but did state they had attempted to reach an agreement for complete interoperability. The likely stumbling block was the Made for iPod program which attempts to collect royalties from manufacturers of accessories designed to work with the iPod.

So at this point it appears that Microsoft is only playing off the overwhelming success of the iPod brand, continuing to promote their compatibility with the iPod, when in reality it will interface with most MP3 players through the USB ports offered in the XBox 360. What could this mean in the end? Well you can bank that Microsoft has covered their butts from a legal standpoint, so the only question that remains is whether or not Microsoft and Apple can arrive at a deal that would see, maybe, a software update to complete the integration. If not then keep your eyes on the horizon and see if Sony is able to leverage a less-tarnished relationship to come to a deal with Apple for integration with their PlayStation 3 which will be due to release in the first or second quarter of 2006.   ¶ 14:35