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From WSJ.com:
Linky - Requires subscription?Microsoft Studies Portable Device For Videogames
By NICK WINGFIELD and ROBERT A. GUTH
March 21, 2006
Microsoft Corp. is considering developing a portable game device that would further pit the company against Sony Corp. and Nintendo Co. in an increasingly important sector of the videogames business, according to people familiar with the matter.
The Redmond, Wash., software company could release the device as early as the end of the year, but it may end up deciding on a later launch date, these people said. The product is being planned by the group within Microsoft responsible for the company's Xbox console. The product may also allow users to play music and videos, a move that would put the device in competition with Apple Computer Inc.'s iPod.
News of the portable game device was reported yesterday by the San Jose Mercury News.
Such a product would open a new front in an increasingly contentious battle for dominance in the videogames business. Microsoft has been pushing hard for a bigger share of the games market with the Xbox 360, a home game console that has been selling briskly since going on sale in November, though the machine has suffered from short supplies. The Xbox 360 is the first of a troika of new game consoles for the living room that also includes Sony's PlayStation 3 and Nintendo's Revolution, both expected out this year.