Microsoft has confirmed that it plans to ship a rival to Apple's iPod portable music player this year.

The software giant will launch a hardware device and accompanying software products under the 'Zune' brand. Microsoft did not give out any further details.

Speculation about the Microsoft iPod rival surfaced earlier this month, following the launch of the Urge digital music service together with MTV. The service competes with Apple's iTunes.

Apple's combination of iPod and iTunes has allowed it to gain a firm grip on the digital music market.

The Zune devices are expected to start shipping in time for Christmas.