Microsoft's new classifieds

The Microsoft company is planning on debuting a classified service that seems like a more personalized version of ebay to me, according to this CNN.com story.

My big question about stuff like this is market saturation. Ebay is obviously a widely-used site, and although I've never used craigslist it seems like those two and Microsoft's version, called "Fremont", do basically the same thing.

Will they all take away users from each other? It can't be that expensive to support sites like that with advertising, but at the same time, what's the point of creating rival networks along those lines?