It seems Apple's iPod and iTunes will be getting some serious competition this Christmas.

According to Bloomberg, Xbox's VP J Allard is getting ready to launch the Microsoft version of a portable music player just in time to take a bite out of Apple's holiday sales.

The Microsoft creation will have a few things a standard iPod doesn't. The wow factor features are reported to include a Wi-Fi connection to enable direct download of content, bypassing the computer, and a screen that will enable better viewing, too.

Music industry exec Chris Stephenson has been helping Microsoft get licenses for content. For his part, Allard has been heavily involved in the device's creation along with Robbie Bach, who was instrumental in the development of the Xbox 360.

With development well under way, Microsoft has been busy talking up music and television industry big wigs. Bloomberg's reporting the company has chatted with the likes of EMI, Universal, FOX and NBC.

The idea is take a big bite out of Apple's corner on the market when it comes to iTunes and it seems as if this just might be possible. If Microsoft pulls off some good licenses for both music and TV content, and has a solid player that's more user friendly, Apple's devices could begin to look a little less tempting to consumers.

Microsoft, if anything, is determined to make Apple look a little brown and old in consumers' eyes. CEO Steve Ballmer has been quoted as saying his company is "committed to doing what it takes to succeed" against Apple.

Considering the touted features of the device that just might happen. And, for all those iPod lovers out there who have complained about a lack of decent games, just think of an Xbox/Microsoft created player. It's hard to imagine this thing would offer some decent games, as well.