Microsoft working on a handheld gaming console?

Microsoft Digital Entertainment handheld by you.Microsoft may or may not be working on a handheld portable but this render here looks cool. The rumor on a handheld is believed to be part of the project with codename “xYz”.

The rumored gadget may feature a WVGA touchscreen, music and movie playback. My only question now is that Microsoft is up to something similar.

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