Rumoured MS Handheld is an Xbox

But the comments are just vague enough that we're still no closer to confirmation that this is a game system.

Last week reports popped up again that Microsoft is working on a new portable media device that would be ready by this Christmas. At the time it wasn't clear if gaming was part of the picture, but a new column by the Seattle Times' Brier Dudley suggests it might be.

According to the column, pieced together through "some research, reporting and information from a source close to the project," Microsoft's new handheld is an Xbox-branded system called Argo that is being worked on by Xbox co-creator J Allard.

The handheld is only one part of a much bigger plan. Microsoft is reportedly working on Argo, a software media player, and an online media service.

And this isn't just some side project either. "The company is firmly behind Argo," writes Dudley. "It has committed hundreds of millions to produce and market the devices."

Another "likely" part of Argo is XNA, Allard's other pet project, says Dudley. Essentially, XNA is a set of tools that helps game makers work on making entertaining games rather than spending their time wrestling with the hardware.

Dudley stops short of saying outright that the handheld will play games, but it seems likely that if it were to carry the Xbox name it would, unless Microsoft is prepared to dilute the brand it has worked so hard to build.

Microsoft has, naturally, refused to comment on any of this, but if the company is seriously planning on releasing something of this magnitude by this Christmas, it won't be long until we're flooded in information. Until then, be sure to keep a saltshaker on hand.

Alex Wollenschlaeger
Editor, Kikizo Games