Yesterday, Engadget posted some less-than-clear images with rumors of an iPod killer coming soon from the Microsoft camp. Today, PC Magazine has confirmation from a Microsoft rep that these rumors were nothing more than hot air. In fact, they were simply the result of a mis-translated Japanese press release about Microsoft's new Windows Media Player 11 software; they had nothing to do with hardware.
So for those of you who might have developed a chronic nail-biting habit, worried that Microsoft's new '#1 with a bullet', MTV-infused music service and killer new hardware were going to usurp Apple's iPod and iTunes overnight (ironically, the only time MTV has anything to do with music these days), I think it's safe to say you can give your nerves a rest.
[UPDATE: Microsoft was setting other rumors about an iPod killer straight; their announcement wasn't tied to these images that Engadget posted yesterday. Those could be shots of a Gigabeat-S portable media player from Toshiba, for all anyone knows.]