Report: Microsoft Considering Multi-Purpose Handheld Device

A report in the latest issue of U.S. magazine Business Week is speculating that, as Apple's iPod continues to grow its market as the portable music player of choice, rival Microsoft is considering making a portable device that would play music, video, and possibly even video games. The report claims that an internal team has been set up within Microsoft, and is "...working on plans to develop its own portable digital media device to rival the iPod, rather than just providing technology to partners." Microsoft's Peter Moore, when quizzed by the magazine over the report, would not confirm any such reports, but nonetheless could not resist speculating on what such a device might be like, noting that: "It can't just be our version of the iPod", and also commenting of the Xbox name as a possible boon for a portable device that also played video games: "I think the brand is an opportunity." However, it seems possible that, as with recently clarified Moore-related comments over a possible Blu-Ray add-on for the Xbox 360, hypothetical statements are being misconstrued as in some way factual, and Microsoft has certainly vehemently denied any suggestions it would look at a portable Xbox in the past. Certainly, in the short-term, it appears that the company continues to concentrate on the launch of the Xbox 360.