A potential clash of the titans is in the works as both Apple and Microsoft may be preparing new killer products.

According to American Technology Research's Apple analyst Shaw Wu, the rumored new video iPod is more than just smoke and mirrors. CNNMoney.com reports Wu believes the new iPod will have a wider screen and bluetooth capability.

Meanwhile, Microsoft is apparently planning a new portable Xbox tie-in machine that, while primarily a gaming machine, could also pose a significant threat to the iPod's audio and video capabilities. With the Xbox, a Microsoft-branded Xbox Media Center-like product, and a new unit that can add portability to the mix, Microsoft is poised for a major move.

I'm loathe to use the term "iPod Killer", but Microsoft is definitely getting their ducks in a row.