It looks like Microsoft is getting ready to market a music device that is supposed to bring the iPod down. The only issue is that the person who took the pictures did not have a steady hand and all of the pictures are blurry. However, no one knows if this is a real Microsoft device or a device for a different company.
Microsoft will likely implement a Portable Media Center into their music player so that it will also handle videos and interact much like Windows Media Center.
Engadget has some more pictures of the device that are supposedly from filming the commercial, however, all of the pictures are so blurry it will make your eyes go crazy.
News Source: Engadget