Some rumors never die. Just think of the mythical GoogleOS, the much-desired Apple DVR, and the long-suspected Microsoft portable gaming system. Such is the case for Microsoft’s rumored portable game console (PGC), currently dubbed the “Xplayer.” A new report out from the analysts at The Diffusion Group suggests that the Xplayer is not only real, but that it will challenge the Nintendo DS and Sony PSP for domination in the handheld gaming marketplace.
“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,” said 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.”