Handheld Xbox still a possibility?

There've always been rumours floating around that Microsoft had a portable, handheld Xbox in the works, something to compete with the Nintendo DS and Sony PSP.

For a while, it was thought that the Zune might be this device, but now that we've seen the Zune - most have been unimpressed - we know it is not in the same market segment as the DS or PSP. And, it should be noted, Microsoft has always denied it had a portable game system in the works.

Well, in an on-stage interview with New York Times video game reporter Seth Schiesel, Shane Kim, corporate VP of Microsoft Game Studios added some fuel to the perpetual motion machine that is Xbox Portable.

When Shiesel asked about Microsoft's plans for a portable gaming device, Kim said:
Never say never ... launching a portable device is like launching another Xbox 360 ... you have to really step back and ask, devoting whatever bandwidth and resources you would have to to make the Zune a multifunction device, is that really the best way to go?

So maybe the Zune is going to be a gaming gadget after all. The Zune seems to be having troubles getting traction against the iPod, so maybe this is how Microsoft tries to keep the device relevant.

Anyone out there used a Zune? Let us know what it's like in the comments.

CES 2008: Zune coming to Canada

As part of the Microsoft keynote briefing at the CES trade show in Las Vegas last night, Microsoft announced that Canadians will be able to get in on the Zune experience starting this spring.

There will be three models available:

• Zune 80 GB
• Zune 4 GB, Zune 8 GB
• Zune Originals: customize your own player with laser-engravings

The Zune is an interesting MP3 player that includes wireless synchronization with a home network and an FM tuner.

The real disruptive thing about the Zune, though, is that Zune users can share music - wirelessly - with other Zune devices nearby.

Like that new song your friend is listening to? Get a loaner copy of the song onto your device and listen to it up to three times before deciding to get your own copy.

The Zune Marketplace - where you'll be able to buy songs, albums, and music videos - will be launched later this year, but a date has not been announced.

Anyone out there think that the Zune can steal any attention from the Touch?