A Microsoft Handheld?

Well no one knows for sure as yet, but the rumor has been around for the last two-three days now and everyone seems to be buying it. So, I decided to investigate myself. A little Googling tells me that the rumors are split on competitor device for PSP/iPod. According to some sites, Microsoft is considering the possibilities of a portable Xbox while others report that, Microsoft is planning a portable mp3 player, an iPod competitor.

While Microsoft has neither confirmed nor rejected either of the two rumors and called them "mere speculations", Microsoft may have plans for an iPod like gadget. Yeah, that, rumor or not, can't be rejected as Microsoft has started pushing MSN Music Service as a strong competitor to Apple's iTunes Media store. Stay tuned to Slash Gear for updates.