From its new Zune player, aka “iPod killer,” to the new Windows Live, aka “Google killer,” those deep pockets up in Redmond have taken reverse-engineering to a different level.

Now they have devised a new site called Soapbox, their venerable answer to YouTube. The site is still closed to the public, but for those wishing to volunteer they have a sign up list for beta testers starting today. It will launch to the public as part of MSN Video within 6 months.

What’s not really addressed so far as I can see is why? Why is Microsoft bothering with this “YouTube killer?” YouTube has not only found it difficult or make real money from its site, but it has also been recently sued by Universal Music Group for alleged copyright infringement. The only real bright spot for YouTube was news from a a few days ago, that Warner Music had agreed to distribute its songs and music videos on the site under an ad revenue sharing deal. Could Microsoft have similar deals in the works or will each and every piece of media be vetted by their legal dept.? Microsoft does make some note of this by apparently offering to to take down any material per objection by the copyright holder.

Either way I’m not sure Microsoft is filling a niche here and most likely instead looking to push aside the competition as usual.

“It’s really early days in online video; this is still act one,” said Rob Bennet, general manager of MSN’s entertainment and video services.”We’re definitely not blind to the fact that YouTube has a big lead right now.” Isn’t this what they also said about Netscape?

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