Dean Takahashi of The Mercury News breaks news reported that Microsoft is working on a portable gaming device that–like the PSP–does video, music, and games too. This news confirms numerous rumors that such a device was in the works. J Allard is leading the team, with Greg Gibson (system designer for Xbox 360) and Bryan Lee (finance chief for Xbox business), according to the report.
The device is still in its early stages and may not hit store shelves until 2007, writes Takahashi. That’s just about enough time for Sony’s redesigned PSP and Nintendo’s re-re-redesigned DS to be right there with it.