Microsoft Prepping iPod Challengers?

The Seattle Post Intelligencer reports on Microsoft's upcoming Portable Media Centers which will be showcased at the Consumer Electronics Show later this week.

The new platform enable devices which "will story and play back video, music and photos". Per Microsoft's M.O., they will be licensing the platform to a number of consumer electronics manufacturers to create these Windows CE based devices.

Analysts expect pricing to range from $400-$700, which will bring it in line with current high-end iPods. According to the article, analysts are split on whether or not this will put a dent into iPods dominance.

Video-based iPods have been a source of considerable speculation since the initial iPod release. While Apple has given no public indication of such a direction for the iPod, at least one Apple Job Listings seems to suggest otherwise: Next Gen iPod.