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Microsoft Talks Xbox Handheld

Rather than denying the possibility, Microsoft's Corporate VP Shane Kim said that a handheld Xbox was a question of "when" rather than a question of "if." According to a recent interview with Kikizo, Mr. Kim hinted that the portable handheld unit is definitely a part of the overall plan, however the company is currently focused on the living room experience.

"For us, it's a matter of focusing on 'when', because if we chased after a mobile or handheld opportunity, we would not have the resources and ability to do things like... Project Natal," he said. "So we've chosen to focus on the living room experience from a hardware standpoint, if you will, but we're building a service in Live that will... will extend to other platforms. No question about it."

While there's no solid blueprint for a portable Xbox, Mr. Kim believes that there's space on the handheld market for the Xbox brand. He said that consumers don't want an "island experience," that they want to be connected to the rest of their lives. He provides an example by indicating the recent transformation of Xbox Live, with Netflix, Facebook, and Twitter integrating into Microsoft's network.

"So the question will be, how do we enter into that market--do we do our own device, do we create our own phone--that's a question for the company itself--do we continue to go down the Windows Mobile path which is that path that we're on today, etcetera, etcetera," he added. "But believe me, we understand the importance of that device in people's lives."