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We're sure you've all heard the rumors but allow us to once again secure them in your brain. It's been heard by a few of the higher ups in the console industry that Microsoft is working on a new handheld device to counter the DS and the iPhone, which hold the market in handheld gaming.
The codename for the project is xYz which the name suggests the product will be a go between combining the XBOX and the Zune (not like any one owns one of those...well....maybe that one guy with the tattoo).
We do know that the handheld will not be a phone but it will involve media viewing, gaming, and the internet using a "Live Anywhere" feature that was shown a few years ago at E3 but never fully brought to light. Will we get an announcement of this at E3?
With Microsofts not so well know UMPC (Ultra Mobile PC aka Project Origami) they might be able to use that as the basis for making what may seem crazy a reality. We can't wait.
