Microsoft’s Zune devices are quite popular as media players and its Xbox 360 is one of the topmost gaming consoles you can get today. Now Team Xbox reports that well placed sources have confirmed that Microsoft is currently in the final stages of designing a handheld digital entertainment device. The gadget is referred to as the “xYz” to emphasize its connection between the Xbox 360 and Zune platforms, and offers media playback and internet services, as well as gaming in a portable format.
The device lacks access to a phone network and is “unlike anything on the market today” according to a source. “Although the Microsoft handheld is definitely a converged device, this is not a Zune Phone,” a source said. “Microsoft won’t compete with its Windows Mobile customers.”
“This is a Live Anywhere device” the source seemed to stress over and over. “There will be a single online marketplace; the lines between the Zune, Xbox Live and Sky marketplaces will blur when the handheld launches.”
The “xYz” device is set to rival Apple, Sony, Nintendo and even Google. Apparently, it is not the hardware that is holding up the gadget, but Microsoft is waiting for other pieces of the puzzle to fall into place.
The “xYz” will feature a large WVGA touchscreen display and is said to be powered by the Nvidia Tegra. The buzz is that users will be able to download games on their 360s and then play them on the “xYz”, and vice versa. Currently, the Tegra does not have the power to run Xbox 360 games, but Nvidia did mention plans to release second and third generation Tegra chips soon. No word on what pricing we can expect or release dates of this Microsoft handheld device as it still remains officially unannounced.