MS readies Napster-like Windows

Microsoft Corp. CEO Steve Ballmer demonstrated a version of Windows with peer-to-peer capabilities at the Streaming Media West conference. The modified OS, according to UpsideToday, "shares rich-media files in a virtual private network connecting PCs with set-top boxes, handheld computers, wireless devices and even game consoles." Ballmer says that digital media is critical to Microsoft's future success and his ambitious strategy includes challenging companies like Adobe, Apple, Gemstar, and TiVO. He even intends to replace the MP3 format with one of Microsoft's.

In related news, the assets of the bankrupt Scour Inc., the P2P company meant to do for movies what Napster did for music, have been sold in a federal bankruptcy auction.

For more on the Microsoft story, click wired.com.