Redmond, WA – Microsoft today, in a surprising move, announced that it’s highly anticipated Xbox 2 video game console would be marketed as a portable system. Industry analysts were not surprised by the timing of the announcement following Sony Entertainment reporting record sales figures for their new PSP (Playstation Portable) Thursday. Sources at Microsoft went on to say that the Xbox division’s push into the portable computing space was indicative of a general attitude shift in the video game industry from television based consoles to screen integrated portable systems. Among it’s other features are plans for TIVO like personal video recording with an 80GB internal hard drive, heads up virtual reality display connections, and integrated wireless peer to peer networking for multiplayer action and file sharing. The Xbox 2, codenamed Trexbox in development, is based on Personal Computer architecture and incorporates the latest laptop and tablet pc innovations, such as a touch screen interface. Microsoft was adamant that their new system was not in direct completion with the PSP or Nintendo DS but expected many players to purchase an Xbox 2 for their portable gaming need due to its TV Out and external controller ports allowing it to be used much like a regular console is today. In a press release to be made publicly available later today Microsoft Chief Software Architect Bill Gates was quoted as saying that, “At 3ghz and only 12.3 lbs, we have created the fastest most portable video game system ever. We can literally squash the completion.” He went on to say, “this product has been designed specifically with the size of American backpacks in mind. With it’s advanced functionality you won’t need much room for anything anyway.” Stay tuned to this site as more information becomes available, pictures to follow.