According to Microsoft corporate vice president Shane Kim, speaking to Kikizo, an Xbox handheld is coming eventually, and will rival the PSP, Nintendo DSi and even the iPod Touch/iPhone.
"So the question will be, how do we enter into that market - do we do our own device, do we create our own phone - that's a question for the company itself - do we continue to go down the Windows Mobile path which is that path that we're on today, etcetera, etcetera," says Kim.
Undoubetldy, the handheld will take aspects of the upcoming Zune HD and if includes phone capabilities, should be able to take the fight right to Apple, and possibly force Sony to come out with their long-rumored "PSP Phone."












