Tell me if you've heard this one before: Microsoft is working on a portable gaming system. Chances are, you have heard it before; not once, but twice before have rumors surfaced relating to Microsoft's secret plans to take their Xbox gaming venture to the streets—literally. In the days of the original Xbox, Microsoft started work on a portable system dubbed "Xboy," but it never saw the light of day. The company also reportedly looked at the possibilities of portable gaming when the Xbox 360 was first conceived, but elected to wait.
The wait is supposedly over. A recent and significant reorganization within Microsoft has created a broader, more powerful team to head up Microsoft's entertainment efforts. The core of those efforts is the Xbox business, and according to comments from Peter Moore, VP of the Interactive Entertainment Business division, that's where Microsoft's strengths lie. While not confirming any existing projects at Microsoft, Moore told Business Week in January that any "must have" portable entertainment device from Microsoft "can't just be our version of the iPod." "I think the [Xbox] brand is an opportunity," he said (http://www.businessweek.com/technology/content/jan2006/tc20060126_148049.htm).