Rumours are flying thick and fast that Microsoft Corp is in the process of developing a handheld entertainment device, which combines gaming, music, movies and video into one single gadget. It is believed that the proposed device will compete with the likes of the PlayStation Portable from Sony Corp,and the iPod music player from Apple Computer.

Fuelling speculation is word that Microsoft has roped-in most of its illustrious team who previously worked on the Xbox 360 video game console. What’s more – the media has dubbed Microsoft’s upcoming device as the “iPod killer”. However sources reveal that the device is more likely to resemble Sony’s PlayStation Portable multimedia gaming device.

Microsoft’s handheld project is reportedly in its beginning stages, and it could well be 2007 by the time the device hits the market. This means that rivals Sony, Apple, etc, have plenty of time to catch up.

Peter Moore, corporate vice president, Xbox, said that the proposed device will not be just “Microsoft’s version of the iPod,” and that Microsoft’s Xbox brand “is an opportunity” if the company were to enter the mobile entertainment business.

Source : techtree

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