Report- Microsoft working on handheld

Report: Microsoft working on handheld
Robbie Bach, who previously oversaw the Xboxdivision at Microsoft, is apparently working on a new projectwithin the company, according to the New York Post andReuters.Bach, whose role in the game group over the past year hasresulted in far less visibility, is apparently leading the chargeon a portable device, say sources cited by both news outlets.However, the device may focus on music and be the mythological"iPodkiller" that has been long rumoured."It seems like an exact head-to-head competition with Apple,"one source told the Post. "It's really like an Appleapproach, to control the device and the whole stack oftechnology. This is like Xbox versus PlayStation."The question is will it also be like PSP versus DS? While the report goes into detail about a possiblechallenger to the digital music throne, currently held by Apple'siTunes, it doesn't mention gaming specifically, though many havepredicted Microsoft is working on a portable gaming device.The handheld could be the first steps, though. Microsoft hasinsinuated that an iTunes-like digital music service would be aperfect fit for the Xbox 360, further expanding the reach of Xbox LiveMarketplace. The company has also signed deals with recordlabels, including Warner Bros. Music and Epic Records(incidentally, part of Sony BMG), for Xbox Live Marketplacecontent.With the Xbox 360 positioned as a home entertainment hub,Microsoft could be readying a handheld that does it all -- playsgames, downloads music, and shows videos.