Microsoft takiing another shot at handheld market?

The San Jose Mercury News is reporting that "Microsoft is designing a product that combines games, music and video in one handheld device." According to the article, the project, which will compete with the Sony PSP, Nintendo DS and Apple iPod, is being led by some of the top talent at Microsoft who launched the XBOX 360 such as J Allard, Greg Gibson, and Bryan Lee.

With little much to go on, rumors say it might take a year or two before the portable hits the market. Anita Frazier at NPD Group stated the obvious when she said, "That would certainly be an interesting development in the market."

It'll be interesting to see where Microsoft goes with this "project". With their XBOX Live and gaming prowess, maybe they can take a run at Sony and Nintendo although two years is a long time to wait....