Micorsoft's Xbox 360 will be compatible with the Apple iPod, but not with songs bought via the iTunes Music Store.

Because of the digital-rights-management (DRM) software in iPod, playback of those tracks was not possible Microsoft's Xbox digital-entertainment executive producer Jeff Henshaw told CNET News.com. The songs will appear greyed out in menus when Xbox 360 owners attempt to access them.

Henshaw said Microsoft had tried to forge a partnership with Apple on the issue, but that Apple had rejected the idea.

It is thought that Microsoft where keen to avoid branding the Xbox 360 with the “Made for iPod” seal of approval to avoid a 10% levy Apple imposes on manufacturers hoping to use the seal on its products.

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