Analyst Predicts MS Handheld in 2007

More unsanctioned talk that Microsoft could be getting into the portable business. Which is a good thing, since they "only" have to worry about Sony and Nintendo.

Microsoft hasn't formally announced work on a handheld games system and already the mythical device has had a turbulent past. After coming, then not coming, then sort of coming, the handheld is not only coming, it could be here next year, at least according to one analyst.

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The source of latest hubbub is a report by The Diffusion Group, a US analyst firm. The authors of the report argue two scenarios: one where Microsoft builds its own handheld, and another where it licenses the technology - something more in keeping with what the company is known for.

Either way, the report claims that Microsoft could put out a handheld by end of 2007 or sometime in 2008.

Driving the whole issue is the money to be made in handheld games. The authors see Microsoft in a good position to use its Xbox brand to enter the portable games arena, which is currently being fought over by Sony and Nintendo.

"Microsoft has been waiting on the sidelines until its gaming console and software business reached sustainability, all the while watching closely how Nintendo and consumers in general would respond to Sony's PSP," said The Diffusion Group's Thomas Wolf.

The authors say Microsoft has an "incredible opportunity" to get into handheld games, considering the Xbox name it has built up and the scope of games it has brought to its consoles.

They do acknowledge that Microsoft "only" has Sony and Nintendo to worry about.

Alex Wollenschlaeger
Editor, Kikizo Games