Xbox Handheld .... do we want it?

[vexor]

From IGN.com

Analysts Predict MS Handheld The signs are all there. How much longer will Microsoft deny the inevitable? by Daemon Hatfield May 31, 2006 - As far as predictions go, a handheld game system from Microsoft has long been considered a relatively safe bet. Now analysts at The Diffusion Group (TDG) have looked into their magic eight ball and, in regards to Microsoft's portable plans, have received the answer "Looks promising." In a report called On the Future of Portable Game Consoles: Analysis & Forecasts, TDG anticipates that "Microsoft will likely leverage its Xbox franchise to enter the portable game console (PGC) market in late 2007 or early 2008." The firm adds that Microsoft would probably try to compete with Sony directly by including multimedia functions with its device, much like the PSP. "Microsoft has been waiting on the sidelines until its gaming console and software business reached sustainability, all the while watching closely how Nintendo and consumers in general would respond to Sony's PSP," commented Thomas Wolf, a portable media analyst and co-author of TDG's latest report. "With global PGC revenues expected to reach $3 billion annually by 2008, and with only Sony and Nintendo active in the PGC space, Microsoft has before it an incredible opportunity. It has a critical brand presence in the console space, the breadth and depth of gaming titles, and the marketing clout necessary to enter this space and win decent market share." As The Diffusion Group sees it, Microsoft has two options for entering the portable gaming market: the company can either license a version of its Xbox operating system for others to build portable hardware around (a strategy Microsoft has taken in the past), or it could introduce its own portable console. Predictably, TDG believes the latter to be the more realistic option. "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," said Michael Greeson, CEO of The Diffusion Group and co-author of the report. "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." In his recent book Xbox 360 Unleashed, Dean Takahashi hinted that a handheld gaming device was in development at MS. And Bill Gates himself recently commented on the possibility of an all-in-one pocket device that would include gaming. "Over time you have to say, will you carry in your pocket a media device and a phone and a gaming device and, say, a tablet device for reading?" Gates asked. "People have different blends of that now. The world isn't ready yet for a device that meets all of those needs. But go a few years out, the hardware gets a lot better, we'll be there with the software platform, and I think everybody will just take it for granted that there will be a better device." In an interview with the NY Times today, Microsoft Chief Executive Steve Ballmer stressed that his company must invest heavily in the opportunities it sees. In particular, Ballmer says it must enter new markets that "require big investments." Citing the Xbox as an example, he says even if Microsoft incurred $4 billion in losses before starting to see gains, its still a better investment to force one's way into an industry rather than buying another company—say, Nintendo—outright. Ballmer says the company must invest enough to be No. 1 in areas in which it is not the current leader. "If you win, the returns come," he said. "If you are very successful, the business model works in almost all of these things." In spite of all this evidence, Microsoft is still resisting admitting any specific plans for a handheld console. In a recent interview with T3 Magazine, head of Xbox for Northern and Eastern Europe Neil Thompson tried to put the matter to rest. "We're not even thinking about that at the moment. Handhelds, in the way you would think about a handheld like a PSP? No." IGN contacted Microsoft for comment, and received the expected response: "Microsoft does not comment on rumors and speculation."

Like I said in the title, do we really want a handheld xbox? I mean we already have the Gameboy and the PSP so why should Microsoft make more money? greedy bastards.

[RC45]

Who would be fool enough to buy it?

[DeMoN]

thats dumb. These guys want to be everywhere, I've started seeing X's on my soup!

[dannyroz]

Well considering my xbox is hacked (and you could hack any MS product ) it might not be that bad. Its going to fail, just like the PSP will end up failing and Nintendo will end up on top. Though if you want to think as a mini laptop that does everything, ill buy it.

And when I say buy it I mean get it as a present

[DeMoN]

Why do you think PSP will fail? It has surpassed GameBoy Advanced sales from what I've heard.