Despite us being told face-to-face that there was no truth in the story by a man from Microsoft, those handheld Xbox rumours just won't die.
Now a research collective called The Diffusion Group is predicting that Microsoft "will likely leverage its Xbox franchise to enter the portable games console market in late 2007 or early 2008", and is expected to "embed a portable multimedia player in a handheld gaming platform similar in many respects to a Sony PSP."
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