It seems that no one has been able to actually prove or disprove Microsoft’s wishes to travel into the handheld gaming market, but - for whatever reason - everyone is reporting on it as if Microsoft has announced it. If they are planning some portable release, we’re probably not going to hear anything until E3, and even then, it will be drowned out by PS3 and Revolution news.

Although a Microsoft handheld would be interesting, by the time they are able to get it on store shelves, everyone will already have accumulated a substantial DS or PSP library, and I cannot see a Microsoft handheld being priced at anything that could be misconstrued as “portable”. Nintendo has the fortune of creating many franchises back in the 2D days, and Sony birthed franchises in the days of basic 3D gaming. If Microsoft went to portables, they’d be entering uncharted territory, and many of their popular franchises would take a graphical hit on a portable system. Moreover, the gameplay would not lend itself (unless the system is an XBox controller with a built in screen).

It’ll be interesting to see what surfaces at E3 about this though. I’m assuming it is a rumor.