Microsoft's J Allard is currently working on a new project to develop the company's first handheld console, according to Dean Takahashi, the author of a forthcoming book about the launch of the Xbox 360. In an article for the San Jose Mercury, Takashi claims that "sources familiar with the project" have revealed that the new device will allow users to watch movies and listen to music as well as play games. Unlike the recently announced Origami tablet PC, the handheld's focus will be solely to deliver entertainment.
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