And it could be either a new home console or a new handheld.

I'm pretty sure MS doesn't want to be the only one without a new toy at E3. ;)

I had the craziest dream, they announced a handheld... and I was questioning them in my dream by saying they don't have Japan, that could be bad move.

(I typically have dreams about the next day....it is annoying).  

Why would Microsoft be pressured into announcing anything, especially since Kinect is successful and actually needs their focus?
Nonsense. The impact of the gamer that actually does follow E3 is not that big.

doubt it, we would have heard somethign by now.

with ngp and cafe going to essentially be so hands on and ready if microsoft doesn't have a working model and jsut ANNOUNCES a new system they would be laughed at.

it would be like the six-axis being thrown on after wii-mote event

Microsoft lineup of games has been joke in 2010 and in 2011 so far. That implies they are hard at work for their new platform to launch in 2012 or 2013.

Microsoft doesn't really thrive on exclusives... I say nothing new this year. Not even a pointer.

Why? Microsoft's own studios are working on games (Rare is doing Kinect stuff, Turn 10 is doing Forza 4 and Lionhead only just released Fable III last year). There's no reason why this should indicate a new platform is coming.

Rumors are that it will be set for 2013 though.

I think Zlejedi is right on the money here, I expect Microsoft to release their new Xbox in 2012 as right now, they're lacking a lot of titles and they probably won't want Nintendo to get a big lead on them in the next generation

I agree.  I cant see MS not having some type of hardware showing to counter Project Cafe and NGP. My guess is if they do have something it will be a tech demo of the successor to the Xbox 360.  But a handheld would be awesome!

As much as I suspect a MS handheld is inevitible, I don't think we'll see it THIS year. Not only would it make them look silly, but without Japan (the handheld's home), a lukewarm start for the 3DS, no rumours and miilions, nay, billions of dollars invested in Kinect, it seems like a suicidal move.

If we're gonna hear about a new gaming console this year, it'll be from Apple.