Xbox handheld out 2007/2008?

May 31st, 2006, 16:03 Posted By: wraggster

Speculation surrounding Microsoft's entry into the handheld videogame hardware market refuses to die, and latest predictions reckon that the company may cause a splash in the handheld arena within two years.

Predictions have come from a recent report issued by research group The Diffusion Group, which states that Microsoft "will likely leverage its Xbox franchise to enter the portable game console (PGC) market in late 2007 or early 2008" and "is expected to embed a portable multimedia player in a handheld gaming platform similar in many respects to Sony's PSP."

It's noted in the report that Microsoft has - apparently - been weighing up a couple of options with regard to entering the handheld market: "...licensing a version of its Xbox OS for others to build portable hardware designs upon or "introducing its own branded PGC [portable gaming console]". But Michael Greeson, CEO of The Diffusion Group and co-author of the report, deems the software licensing route unlikely.

While licensing the software is consistent with Microsoft's larger strategy, and no doubt Microsoft has endured many failures in regard to hardware plays, the success of the Xbox presents Microsoft with a unique opportunity", Greeson commented. "Microsoft owns an established and highly-regarded hardware brand, meaning that they can enter the PGC market from a position of strength, a privilege not enjoyed by any other player except those already active in the PGC space."

We can only wait to see if this informed crystal ball gazing turns out to be accurate, however MS head honcho big Bill Gates himself added further fuel to the fire in an interview on ZDNet. When asked about that portable media player, Gates said: "I have no announcement to make today. We are looking at various ways to bring more to that space. There is a lot yet that hasn't been done."

Via CVG

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