http://news.teamxbox.com/xbox/19639/Microsoft-Working-on-Digital-Entertainment-Handheld/
Could be interesting and expensive

i figured they would probably be working on something...wouldnt have guessed it would be in the "final stages"

So they are making a PSP?

Shouldn't they be focusing on solidifying their hold in the home console market? It seems a little foolhardy to spread themselves over two different markets; afterall, that's part of where Sony's struggle is right now.

Plus, that would make six consoles total (3 handhelds, 3 home), 7 if you count Apple...*sigh*...

Sampling too many cakes (:/) MS are right now, they need to at least secure a strong base in the home console department before jumping into handhelds. Probably think that it is now or never in terms of entering the handheld department which I would say is true.

I want it. I am actually really excited about any new handheld, especially a newbie. I love the psp, but it's potential has pretty much been compeletly wasted. I would play my psp over my ds any day of the week if it actually had more games to back it up. As it is, my ds gets more attention due to the better support.

I'd love to see microsofts take on the handheld market. Portable halo FTW!

ZuneHD

 Yeah, and it's killing Nintendo.

@thx1139
That's what I think. They have the nVidia chip in it, so it may be able to emulate the Xbox gpu fairly well.

Probably just adding more gaming functionality to the Zune. This will come in the form of the ZuneHD. Not really a stretch from what they are currently doing now. XNA is already integrated with Zunes, now they can just add XBLA integrationa nd you have a device with an already stellar store of games.

This is massive. That Tegra video absolutely kicks the SH*T out of PSP or even PSP 2 stuff Ive seen.

M$ to open E3 with a bang!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!