Its kind of odd to think of MS in the portable gaming market to be honest. If they actually enter with a portable device that means we will have 3 big competitors in the portable gaming market. Generally only 2 can survive, though from past experience only 1 will remain with recognition (Gameboy). If MS does enter and they actually have something that is fun and does what its supposed to I can see it up-ending the PSP rather than the Ipod. I can imagine a bit of DS disruption in the US in Europe but there is no chance in hell of a problem arrising in Japan.

Just my 2 bits.

Come on!
The 360's great. I'll give you that, but just because Sony's made money and gained market share from the PSP doesn't mean that you can-or should-invade and pervert the market with another gizmo whose emphasis is squarely NOT on games. I played the PSP; it sucked.

Now get back to the Gates-cave and get crackin' on Resident Evil 5!

When pokemon comes out for the DS and final fantasy for the PSP MS will have no chance.

If MS make a handheld it will essentially be a powered up PDA. if the giant loss suffered with the Xbox wasn't enough they attempting to jump into a market that has a strangle hold from Nintendo, with a bit if loosening for Sony. It's just like if another company similar to Apple showed up. They'd be ridiculed for jumping into such a turbulent market.

No way. I'm predicting another N-Gage. Yet another company who cant match Nintendo in terms of gameplay so they'll just stick in some fast chips and hope somebody will make a game for it. Japan can make the mini tech. America can't make a system that looks good (other than Apple).

Leave it to the Japanese I say.

I will say this: if they make a portable device similar to the PSP that is open to homebrew (I know, won't happen), plays music and movies, AND allows you to transfer your games purchased on Xbox LIVE Arcade to it, I will be all over it. In actuality, I don't think there is a snowballs chance in hell of them coming out with a portable gaming device any time soon. Sony has already proven it is difficult to loosen the stranglehold Nintendo has on that market.

The Xbox and Xbox 360 are physically massive, graphically powerful and consume more energy than a small star. It would be impossible to make a portable game system in the style of their home consoles.

I predict that the first Microsoft attempt at portable gaming will fail, but the second attempt will include a multitude of Xbox Live functionality and media sharing and streaming from PCs.

Anybody ever notice that the Memory Unit looks about the size of the old Nintendo GameBoy game cartridges? I wonder if the portable Xbox will play Live Arcade games!

THis is what happens when you support a handheld because of looks and games that are "supposed" to come rather than what is out. The PSP did nothing so far but throw out port after port, no games and support UMD media of movies you can get on dvd's and people ate it up. So now what do you think MS is going to do huh? The Same damn idea only they will release theirs first!

I Mean don't people understand, Yes it is great to have competition, with out it our market would be destroyed by over pricing and rampant gouging of the public. That being said why is it gamers of today feel the need to support anything that says it plays games or is from a big "gaming" company. We are kiling or culture, by giving blind adoration and acceptence followed by consumer loyalty. Buying every system doesn't make you a gamer, if you're just buying it to say you own it; that makes you a sheep. I am not saying not to buy the PSP if it has good games buy the system hell if sony takes market share for making quality cool. What is not cool is the fact that this system was bought reguardless of what came out, nobody waited till something worth while was out to pick it up it was just force fed to us.

Now MS is considering dropping a HandHeld and why, because they can throw money on top of money into it and nothing really can stop them. I mean does anybody have any idea what it means if MS can just win the home console race by coming out first? Never mind a serious shortage, overheating systems, and a lack of great games that all came with a serious price tag. If we want gaming to survive past 2010 we have to become more discriminating with out taste. Yes gaming is about buying games, but if we just buy anything there will be no more good games and innovation and just poorly made pop games with repeated storys and concepts. Can anybody Say SEGA, with out the dream cast or any system to make their innovation come to life look what they have reduced themselves to! Shadow the hedgehog, a line must be drawn soon!

P.S. Well actually only console gaming will die! P.C. Will live on and Man you hate console fan boys LMAO! You're going to really dispised the people who are elite in the world of P.C. gaming, there is no room for casual there. Just check out one W.O.W instance run. You don't want to discriminate with consoles, and console software you can be discriminated against in the P.C. world and they don't want to hear your complaints.

the article mentions a couple of nice tid bits...note these issues:

- attaching it to the Xbox brand
- pissing off the portable device makers who use MS DRM etc etc

I'll conclude that MS plans to pull and N-Gage only avoiding all its pitfalls...it won't be a graphical powerhouse like the PSP...but it'll be a media player and casual game player at the same time with heavy heavy connections to Xbox Live...

but they won't call it the Xbox handheld...they'll position it in the digital player market against iPods etc with games as an added advantage and use this to drive Xbox 360 sales as well...

I can bet you that they don't plan on losing even a cent on this device...and I'm not sure of this but there's a possibility that they'll partner with Nokia to make this device...

they don't want to go up against the DS or PSP AT ALL...this'll just be a casual device with convergence written all over it...

as the market gets saturated, as throughout handheld history, the more competitors it gets, the more nintendo tends to pull away with its fantastic (and now slimmer and sexier) products.

you can't touch nintendo in the handheld space. the PSP is as close as it gets. the Game Gear was as close as you can get. But Microsoft just wants to enter the same markets as Sony does just to try to unseat them. It's an unwise move, and makes no sense for them. They need to establish themselves in the console arena first.

Breaking news!!!

THIS SITE IS BIASED

i mean jeez they know that alot of gamers dont like to read so much so they post a big bright headline and then post a stupid looking handheld. its called sudjestive psychology. were the hell did they get that pick from ,and also everytime the have no choice but to post good news about the 360 or microsoft they always end it on a sour note like the headline "xbox-360-controller-for-windows-great-hardware-weak-software"

the owners of this site should let sony win fairly and squarely with its own merit.

"No way. I'm predicting another N-Gage."

N-Gage is still a good device and still going you idiot. I still play mine and there are still games coming out for it, community is still going and the next gen plans are rolling out.

Yeah Nokia stuffed it with a powerful chip 2 years ago but it can still hold its own against the best DS games in terms of graphics, and mobile online is yet to be matched by ds or psp.

So you have to give it some merits.

Anyway, regarding MS portable - if sold under the Xbox name and released this year, it could seriously upset the PSP in USA and EUROPE, not Japan though.

Nice article.

Too bad it completely goes against everything that we have heard for the last few years. And since we're hearing things directly from the game VP's, I tend to put more creedence into them instead of something like this.

For one thing - Microsoft already HAS gaming consoles out there - millions of them. You may already have one yourself. It's called a cell phone. For those of you still living in caves, you may have noticed that a lot of the newer models of cell phones are running Windows software already.

For another - we're the HED division. That's Home Entertainment Division - which includes software (Games, productivity, etc.), hardware (360, keyboards, mice, etc.), and Mobile - our Plays For Sure products.

This is not to say that a portable device of some kind might be considered - I just tend to think that when Bill, Jake, Chris, and the other MSFT guys tell us that we're not looking to compete against PSP or DS, that I'm going to believe them. (Maybe that's another reason we were working with the guys that make cell phone games as well - and don't take this personally, guys, but as an older gamer myself, I have no desire to try to play NSF:MW or anything like that on a 2" screen - I prefer my 60" TV. And so do a LOT of people.

Remember, your main demographic market is getting older, and while they're being replaced by their kids, we tweeners are where you youngsters will be in a few years. So strain your eyes now while you're young - when you hit 45 or 50, you'll be wanting that big screen for deathmatches, too.

If they can make this more media friendly than PSP, that would be nice. If it had installed memory (1 gig maybe) and didn't rely on stupid proprietary media like UMDs, it might give the PSP a run for its money.

I think it would be more focused on media with games as a sidenote. If they could make a handheld media device with PC/360 friendly software, I'd be interested.

Where can I pre-order?

If Microsoft were to do this, I don’t think that it would be a portable gaming device. If anything, it could be more similar to the video Ipod, where the Xbox 360 could offer videos via download from the Xbox 360 marketplace, similar to iTunes. Creating a new portable gaming device to combat the PSP with its UMD media, or Nintendo’s dominance in the handheld gaming market would seem too ambitious, especially since they currently already have their hands full with the Xbox 360.

The ipod has such a strong hold of the market for portable music players that it will be interesting to see what Microsoft, or any other company, could offer that Apple doesn’t already. I have yet to see another portable product that could counter Apple’s innovative devices with their integration of software (iTunes) and hardware (iPod). Microsoft could be the company to do this, especially with the rise of popularity of their Media Center functionality and features.

It can be done, and they could make something that would completely domintate the market. Much more likely of a complete failure than domination however...

It needs to be thin and sexy, 30GB minimum, think something along the lines of Creative Vision:M for functionality, but thinner, better looking, bigger screen...have wifi with streaming, and play games, with enough software support to make it viable. This at a iPod price point, with as long lasting of battery or better...

Well I don't think it can happen, but here is to hoping...

Just put a 30GB iPod sized hard drive in it, make it play XBox 1 games, add a decent UI to it and it will fly off the shelves.

This is interesting news indeed. I can see MS releasing some kind of handheld to play WMA, WM9 movies and be compatible with Xbox Live Arcade titles.

If the device has at least 1-2 GB of flash memory, a SD slot(or other standard media card format) and can deliver the same experience of a PSP along with iPod ease-of-use in a small, affordable and highly portable package I can see it giving the current devices a bit of competition.

Don't f*** wit da DS! ;)

If it plays Live Arcade games, bitchin'. Sounds like healthy competition. If it's more like a PSP, screw it. We need Halo and PGR on a handheld like we needed GTA and Socom (as in, not really at all).

I completely support Microsoft if they venture into the portable market, if it in fact is ALSO a Pocket PC. However, it is hard to see how they could make the price manageable since the PSP is priced too high and it has all those supposed "Media" features.

Screw Music and crappy UMD movies. That was Sony's mistake. The PSP is nice, but overall unimpressive, no fun, and feels like a waste of money. Microsoft could fix these problems. But the question is, will they?

hmmm seems like MS like to stick their heads in any tech stuff thats
popular, 1st the xbox/360 then now handheld media device!? I mean...
there are a lot of people buying microwaves and they are very popular too
when will I see Microsoft microwaves and dishwashers.

microsoft is not going to make a portable gaming device, however I can totally see them making a device that has a main purpose of running digital media, but I bet they will games available for it like the stuff we see on live! arcade. Geometry Wars on the go!

this isn't too crazy of an idea if you think about it. MS already designs all the software for pocket pc's and what not, so why not make there own device. It's not like they are invading a new market.

"hmmm seems like MS like to stick their heads in any tech stuff thats
popular, 1st the xbox/360 then now handheld media device!? I mean...
there are a lot of people buying microwaves and they are very popular too
when will I see Microsoft microwaves and dishwashers."

it's called a business dude, you have to make stuff to sell in order to stay afloat. Why not make stuff that you now is popular so it will sell. The iPod was far from the first MP3 player with an HDD...and apple jumped in and made it...so when will we see apple dishwashers? how about sony? rca? hitatchi? samsung? every tech company releases new products. I'm surprised that you act like microsoft is the only one to ever do this or something. It's called following trends, and in many cases, it's the best way to go to make some money while you can...SUV's anyone?

an inside word from msft...the have indeed been working on a device for at least a year. originally it was going to be an ipod...but with video! then the ipod video came out. now it's going to be an ipod video...but with games!

like most massive multinational tech firms, msft produces and tests many, many prototypes. most never make it to market. this one might. and it might not.

Umm...#10?
PSP..graphical powerhouse?
Open mic night at the Improv is tomorrow, dude.

If they make this thing so It can comfortably fit in your pants pocket like a gba micro (or even the sp for crissakes) they will completely beat down the DS, PSP, and the iPod. That's my biggest problem with the current generation portables: they're too damn big. The PSP has a beautiful screen but it feels like it's going to snap in two if I sit down and it's in my pocket. I'm pretty confident that the DS won't snap in two but my leg might. If they take the good points of both these systems and make it the size of a game boy, It'll take over, I'd rather nintendo would do that with the v.2 DS but that's probably not going to have all the built in media capabilities this'll have.
There's always: http://www.gbamovie.com/
Believe it or not, I actually like to read on my commute.

My last line may have not made any sense.
I think this thing should definitely also include the capability of reading e-books. That way they can really work into the commuter demographic. The e-book and music (from the gbamp http://www.gbamovie.com/ )is what caused my gba to replace everything in my pockets when I go out to the subway in the morning.
If they can make it so you don't have to make any conversions (only really time consuming when trying to make .txt files from pdf files and compressing movies)this will probably replace my gbm.

"...so when will we see apple dishwashers? how about sony? rca? hitatchi? samsung?"

I remember RCA did manufacture dishwashers before, but I haven't seen apple, sony yet.

Here are the Hitachi and Samsung ones, and I guess I'm not surprised if a software company like Microsoft makes a dishwasher anytime soon..
http://kadenfan.hitachi.co.jp/ssen/
http://www.samsung.com/products/dishwasher/index.asp

"every tech company releases new products. I'm surprised that you act like microsoft is the only one to ever do this or something."

I was trying to point out that the market for handheld devices are surfeited, cause these hardware needs software to make them run, especially as a gaming device, wonder swan, neogeo pocket, gamegear, virtual boy, N-gage, gizmodo…etc, all followed the trend, yet their product line failed to continue in making profit for their companies.

I bought a PSP(Piece o' Shit Portable) the day it came out with hopes that it would have something fun on it. but it didn't, and still doesn't. but in other news I have covered all of the sony markings and now I call it PSNES, or Portable Super Nintendo Entertainment System, Because that is all I use it for, it's audio quality isn't good enough for MP3's and UMD movies are a waste of Money. At least there are more than a hundred SNES games as well as Sega Genesis games that I can play on my PSP. I wouldn't buy a new PSP however, mostlikely you will get stuck with the new Firmware version 2.whatever, and won't be able to run emulaters. it's pretty sad when a new "powerful" system comes out and all anybody can think of is " can I play DOOM I&II on it?"

Oh please dear God! Microsoft, don't butcher the hand-held business too!!!

I am a spammer and I have a stupid name.

peter78b@gmail.com

GO! Microsoft GO!
i was just browsing through the sony psp's features n thought of havin one in a year or 2.but i felt the gr8 competition n advancement in the portable gaming consoles.hey come up with a product tht is much superior to the psp features,i have n xbox n i always feel comfortable with microsoft stuff.the product should be launched with 2 models 1 without a cell phone n 1 with a phone.it should be very handy n light .u guys should focus on what the youth actually wants,wht r the features tht impress them.one of the features tht impresses me is the internwet facility n wireless multiplayer gaming n come up with bluetooth facility.the most important for ur high sales launch gr8 games which will be only in microsoft gaming world,tht's wht u guys always do.hey im waiting fro microsoft to launch this gr8 ipod cum psp killer!!!!

I would totally support a portable gaming system from microsoft, however I cant believe how many people hate the PSP system, I honestly believe that 70% who put-down the PSP system are to poor to afford this great device and own the DS system because its cheap. I also cant believe ppl are still hyped all over a 20 year old plumer "MARIO", is he the one keeping nintendo alive? unreal. Thats all nintendo makes is mario games. And lil tetis games.

I know Microsoft would domate the handheld world with their first system. But for now PSP is ruling, and in sales aswhile.

I 100% Agree TheRealWorld, i don't see why people have against the PSP. xBoy would be a good idea.