With the success of the Nintendo DS and the Sony PSP, it should come as no real surprise Microsoft wants a piece of the pie.
BusinessWeek is reporting that Microsoft is considering entering the market themselves, with a new multimedia device that would incorporate gaming.
Peter Moore, would not confirm such a project but did say that "any Microsoft media device would have to leverage the company's most significant consumer strength, video gaming."
If Microsoft were to create such a device, would it be more like an Xbox handled or more of a PocketPC PDA with gaming functionality. Moore says about the Xbox brand, "It can't just be our version of the iPod... I think the brand is an opportunity."
On the gaming side, Nintend's DS and Sony's PSP are at the top of the market, with both offering someting unique.
If Microsoft does go ahead with just a project, they would have to decide whether-or-not it would be part of the "Xbox" brand. BusinessWeek points out that "If the new device comes with the Xbox brand, most consumers will view it as a game player, like Sony's PlayStation Portable. That might limit its appeal, since the portable gaming market is much smaller than the one for digital media."