Microsoft Working on Mobile XBoxRumors of an Mobile XBox went off the charts yesterday after a silicon valley insider reported in the San Jose Mercury News that Microsoft is working on a mobile handheld gaming device that will compete head on with Apple’s iPod and Sony’s PSP. The project is headed by J Allard and Greg Gibson, two senior leaders of the XBox design staff. The project is still in the early stages and it’s unlikely we’ll see anything for at least year or two.

This is not the first rumor of a XBox portable gaming device but this news seems to have more credibility because of the recent announcements of the Oragami project, increased competition from Apple and Sony and internal reorganizations at Microsoft that have put the control of entertainment and media products with the XBox management team.

San Jose Mercury News - Microsoft takes another shot at handheld market

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