lair...

will be interesting what microsoft ips go portable, my guess is halo and gears i think.

If you can download xbox Live arcade game to it I would consider and make it compatible with Zune software.

I can see as someone said, I can see some potential if it's going to be what ipod touch is to apple ipod.

Other than that they are going to have tough market to get into that already dominated with ipod and DS.

What will be interesting is watching that nutcase Ballmer unveil this thing.

THis is HUGE news I expected more posts!

If Microsoft releases a device that is anything like what this article claims, then that device is doomed to fail, just like all of Nintendo's other competitors in this space to date.

Nintendo will continue to rule the handheld gaming scene until a competitor comes along that actually understands portable gaming. If these rumors are any indication, Microsoft does not.

XBLA marketplace and Zunecasts on a handheld will be a win for me. Imagine playing Geo Wars 2, Braid, Castle Crashers on a portable... big win.

NXE to go. Would be cool if it took memory cards and you can plug it in and take your gamercard to go

The left analog nub should have been on the top and the d-pad should have been under it. It's less painful and would follow the 360's controller layout.

imagine a handheld with XBOX360s horse power...

Imagine: Babyz.