Rumours abound on popular games forums and blogs alike are pointing towards Microsoft releasing something called "Xplayer".
Xplayer is a bid to capture the huge audience for handheld entertainment gadgets like Sony"s PSP and Apple"s iPod.
Microsoft is rumoured to be designing a project that combines video gaming, music and video onto one device to launch under their Windows Mobile family.
If the rumours turn out to be true then it will be at least a year before we see the device hit stores. With Microsoft"s Xbox 360 already out months before the delayed PS3, could a portable Xbox be the icing on the cake to edge Microsoft"s sales beyond that of Sony"s?