The first handheld gadgets to play music and movies on Microsoft's "iPod killer" software will be available in Europe in the second half of 2004, the company said on Thursday.

The gadgets will run on Microsoft’s yet-to-be-unveiled Portable Media Center software in a direct assault on iPod, Apple Computer Inc.’s hot-selling digital music player.

Working with a host of manufacturing partners, Microsoft is introducing a device that plays movies and stores digital photos as well as songs in a bid to grab a share of the fast-growing digital media player market.

Read the full story at Reuters technology.

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