An xbox 360 slim would be so sweet. It might just be one of their surprises..

How about a portable 360? That would dominate. Even the DS would bow.

I dont think its a Xbox 360 portable. They already saw the disaster called the PSP. I think it will be more like the I pod touch with game features

I think Microsoft is spending $5 billion on R&D. This is only a drop in their bucket. I'm surprised EDD isn't higher.

Zune Touch and Zune Phone

" and I don’t think it is the third Xbox home console. "

Then you're wrong. Clearly they have been working on it since about 6 months before the release of the 360.

a zune HD would be really sick.

*facepalm* the PSP is hardly a disaster... its amazing that SONY was able to get as far as they did in the handheld with their first portable console.

Its a disaster because of the horrid software sales, and the I Pod Touch is running circles around it already. Just like how Ipod just destroyed the Walkman business

That doesn't make it a disaster either. Consumers are still buying it, and developers are still supporting it.

The iPod Touch is an MP3 player first, with the ability to play games, whereas the PSP is a portable games console first with multimedia functionality. They are not competing with each other.