Microsoft denies rumors that it's making a device in Japan to compete with Apple Computer's iPod, PC Magazine reports.

Reports have surfaced, the magazine reports, that Microsoft is working with eight other companies on a portable music player. A spokesperson who did not want to be named explained further:

The announcement that came out of Japan this week was simply about the Japanese launch of Windows Media Player 11. Due to translation issues the announcement was misconstrued to sound like Microsoft was developing a rival to the iPod; that's just not the case.