Hoping to outshine competing digital media platforms, Microsoft said that its new Windows Media 9 Series, formerly code-named "Corona," would be unveiled by Chairman Bill Gates on Sept. 4, with a beta version available the same day.

Microsoft is trying to close in on cross-town rival RealNetworks Inc. RNWK.O , which leads the online digital software arena with a 16.2 percent market share with its Real series of players, compared to Microsoft's 14.4 percent share, according to Nielsen/Netratings.

Dave Fester, Microsoft's general manager for digital media marketing, said specific features of the Windows Media Player would be kept under wraps for another seven weeks, but he emphasized that it would be a "dramatically enhanced player."

Key features that Microsoft is touting include near-instant playback that gets rid of the initial delay when streaming Web content, high-definition television (HDTV) grade picture quality and theater surround sound over five channels and a bass subwoofer.

Steve Kleynhans, vice president of end-user platforms at the Meta Group, said that such features represent Microsoft's ambition to extend its reach into people's homes, beyond the personal computer.

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"Microsoft wants their media technologies to be at the center of users' entertainment experiences," Kleynhans said. "It has to be at least as good or better than what people have in their living rooms."

To take advantage of some of the new high-end features, particularly video, users will most likely need a high-speed broadband Internet connection and new audiovisual hardware on their computers, which would become available over time.

"We think we'll get pretty broad industry support for the platform," Fester said.

But users with conventional dial-up speeds and hardware would also benefit from enhanced features. Portable devices, such as CD and digital music players, would also be brought into the mix, he said.

In addition to the consumer-oriented player, Microsoft is launching beta versions of the software needed to package media as well as the protocols and tools for other developers to create their own software.

As with the previous player, all Windows users will be able to download the software from Microsoft at no additional charge.

Fester said the Windows Media 9 Series would also include the latest digital rights management software, which aims to prevent improper use of copyrighted digital content.

Microsoft shares fell as much as 8.2 percent in active early Nasdaq trade on Monday, but was nearly unchanged at $51.8 later in the day. The software giant will report fourth quarter earnings on Thursday.