Social networking site MySpace might be working on its very own MP3 player, MySpace CEO Chris DeWolfe suggested during the Web 2.0 conference held in San Francisco this week. Together with Warner Music Group CEO Edgar Bronfman Jr., DeWolfe talked about of future of music, and didn't deny we could soon see an MP3 release as well.

Looking further into the future, and considering the phenomenon MySpace is among its millions of users, we can’t help but wonder how this device would look like, what will it have to offer and how will the iPod meet the new competition.

DeWolfe however was not very specific on whether they are already working on an MP3 player, but he did not exclude the possibility either. For now, he said, they are much more focused on the service. But, “if anything, we’ll be accretive to iPod sales,” DeWolfe said, according to Reuters. “Unless we develop a device,” he also said.

Social networking site MySpace has gone beyond the classic features and now revolves around music as well. This tendency reflects in the way users are addicted to sharing playlists with their friends, or take a peek at their friends’ music choices to discover even more music.

Whether they are working on a music player or not, MySpace is currently more interested in its freshly launched service, MySpace Music, which came out in September, after all four major music labels signed up for the service.

Within days of launch, users have shown a great interest in streaming music this way, and focusing on developing the service even more is especially important as many expect to see a new rival for the iTunes…although DeWolfe doesn’t see the iTunes as competition for now.