In an effort to loosen Apple's stranglehold on the portable media device market, Microsoft may be contemplating throwing a new device into the fray; one that would most likely include gaming.
Xbox chief Peter Moore told Business Week that a new Microsoft device would most likely incorporate music, video and gaming, the latter of which the iPod doesn't support. The device, then, would also butt heads with Sony's Playstation Portable and fall into a category all its own.
"It can't just be our version of the iPod," Moore said in the interview.
The fact that Moore commented at all could indicate that the Xbox brand would be used to market the device. Back in 2004, it was rumored that Microsoft was developing a handheld called the "Xboy."
"I think the brand is an opportunity," Moore told Business Week.
Microsoft would not comment on the device and even if one is in development, but a representative did say, "Microsoft is committed to innovation." The software giant has shifted focus to increase its presence in entertainment fields, and an iPod/PSP competitor would fall in line with that shift.
Obviously a Microsoft handheld raises a lot of interesting questions. Will it be compatible with the Xbox 360 or even the Xbox? HD? Online? Again, aside from Moore's comments, Microsoft is keeping silent.