Microsoft Corp has taken another step in positioning its audio compression software against the rival MP3 format. Redmond has bought Interactive Object Inc’s digital audio player technology to add stereo playback capability to Windows CE. Seattle-based Interactive Objects has also signed on to develop additional streaming media software for the CE platform. The playback software is the first to support Microsoft’s new Media 4.0 audio compression format. On palmtop-size devices the player is claimed to offer up to four hours of audio playback. Interactive Objects was founded in 1995 to develop internet software, it is made up of ex-Microsoft employees.