Microsoft to Enter Handheld Market?

eldavojohn wrote to mention that, via Joystiq, he read an article over at BusinessWeek that indicates Microsoft may be working on a portable media device. The article states that, if they are, they're not just going after the iPod. The plan would include a way to leverage a powerful part of the Microsoft empire: games. From the article: "Microsoft would probably use the Xbox brand to market the gadget. 'I think the brand is an opportunity,' Moore says. True, perhaps, but also risky. 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." A funny comment, considering the success of the DS.

Now this I could live with

[casualsax3]

I never understood why Microsoft entered into the crowded, mature console market to begin with. I always thought it would have made more sense to go after Nintendo with their portable monopoly, back when the sub par GBA was the only game in town. Imagine what Microsoft could have done if they had launched a competing portable around the same time the Xbox came about. They would have crushed the GBA - no backlight, no FPU, only 2 face buttons. Instead they waited, and now they've got to face off against the GBA SP/Micro, the DS, AND the PSP. Why can't Microsoft pioneer something for once, instead of playing catchup?

Steve's Reality Distortion Field

[binaryDigit]

It would appear that Steve's Reality Distortion field is effective even against the evil empire! [slashdot.org].

Their last portable...

[truthsearch]

When their big push was portable music players a large percentage of their own employees used iPods. Even an executive said the iPod was better then what their hardware partners offered. If they can't get their own employees to use their portable products why would anyone else? Let's see if they repeat their last failure.

Re:A Third Portable?

[flynt]

For me, the main point of this should be to interface with Windows Media Center. I still have to go through a two or three step process to get recorded TV onto my iPod. I guess I don't see much point to such a device, but maybe someone would.

this pig could fly....

[Churla]

Leveraging Xbox live as a networking system to game against others, put in all the PsP goodies like local wireless access.
Slap a derivative of Windows Mobile on it for the OS so you also have a PDA capable device. And make it look and feel like other OS products people know (windows and media center)
Give it a touchscreen to nudge in on the PDA market futher.
Enough storage capacity out of the box to be a small MP3 jukebox of viable portable drive.

Not to mention the ways to integrate it and tie it in as the device which moves between your media center, xbox, and windows machine.... Lots of possibilities to leverage work they've done in other areas.

One thing at a time please!

[ZachPruckowski]

Microsoft already has too much on it's plate (in order of ideal importance):

1) Windows XP SP3
2) Windows Vista
3) Getting a decent Xbox 360 library developed
4) Body Vests for staff that are specced to survive a Ballmer rant
5) Windows Blackcomb this decade.

If MS enters a new market, it's going to fall apart. MS is having to go all out to get Vista off this late, they'll have to push harder to get Blackcomb out this decade. And neither the Xbox 360 or Vista seem to be offering all that much as an incentive to upgrade. MS has too much other stuff they need to fix first.

Possible designs

[Eightyford]

Here are a few possible designs:

xbox [yafro.com]
xbox [pipex.com]
joke [estarland.com]
xbox [aeropause.com]

And, a portable gamecube:
gamecube [btconnect.com]

Reference design. Maybe. Product? Doubtful.

[winkydink]

I can't see them pissing off a whole bunch of media player mfgs who already have product on the market by going head to head with them. I can see them doing a reference design like they did with a cell phone.

Re:This could work

[CheechBG]

You automatically assume that everyone in America (or the world) who would purchase one of these has a high-speed internet connection. In the real world, that doesn't happen.

Plus, this would eat into the profit margins of the big retail stores. They will never allow that to happen.

Re:Now this I could live with

[Anonymous Coward]

What surprises me is that Microsoft decided to make any hardware at all. Why didn't they just offer the Live service on all existing consoles, leveraging their enormous pre-established MSN server network and making money hand over fist, instead of losing a cool $4B with under-utilized, ugly, and notably unpopular hardware?

Live is the only thing they've done right so far, and its the part they make the most profit on too. Not sure what this whole "hardware" thing it about still.