We Can't See Microsoft and Logitech in Harmony

Good thing this rumor doesn't have legs. If it did, we'd have to break them.

Since early January, reports have surfaced that Microsoft is interested in acquiring peripheral-maker Logitech for close to $10 billion. Finally, Logitech chairman Guerrino de Luca shot down the rumor in an Italian newspaper, according to Reuters. "It would be an operation without sense," de Luca said. "Without competition, Logitech would lose the great pressure to innovate."

Mice and keyboards are one thing - Microsoft is already a serious player in those businesses, and would likely be considered a monopoly if joined with Logitech's business. But more importantly, we hope Microsoft stays far, far away from Logitech's Harmony remotes and Squeezebox media network adapters (two popular home-entertainment product lines that Logitech acquired).

De Luca's point that Microsoft ownership would crush Logitech's inventive spirit is valid - this is a common concern with any buyout. But for Squeezebox and Harmony in particular, it could be permanently damaging. Microsoft already works closely with Logitech on peripherals for Windows Media Center. If Microsoft truly wants Media Center PCs at the center of every serious home theater, it will have to work on compatibility. Logitech's top-of-the-line universal remotes, if developed organically with Media Center PCs, could make the PCs all the more appealing. But would the remotes remain compatible with hundreds of other home theater components? Logitech already makes an Xbox 360-branded Harmony remote. That's enough integration for us.

Logitech subsidiary SlimDevices' SqueezeBox would be at even greater risk. The company's new Squeezebox Duet, for example, isn't compatible with music purchased from the iTunes or Zune online music store. Microsoft needs all the help it can get for Zune - one can see why it might be attracted to the audiophile-oriented wireless networking music software and hardware. But Squeezebox is a favorite among the the open-source community for its hackable nature and Linux compatibility. Is that likely to sit well with Microsoft?

Here's hoping we've heard the last of this rumor. -Rachel Rosmarin

Reuters

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