Microsoft Working on Portable Game Machine?

Sources inside the company suggest that Microsoft has put together a team that's considering the business end of an initiative to unseat Apple's iPod.

If Microsoft goes ahead with such a device, it'll have to ask itself whether or not it wants to include it as part of the Xbox family."

So, I have a novel idea. Instead of saturating a thriving industry, why not go in with Nintendo on their next Gameboy in an effort to crush Sony once and for all? Gameboy X (I'm a marketing genius)? I'm just thinking out loud; that may or may not be the best idea.

Or, you know, they could just spend money fixing their Operating System. That would be good for us all.

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[UPDATE: I believe this turned out to be the Origami project]

Topics: Microsoft, XBOX, XBOX 360, XBOX Live, Origami, Microsoft Origami