According to a recent press release from the Diffusion Group, which specializes in analyzing and forecasting market growth, the condistions for Microsoft to enter the portable gaming platform should be just right within the next two years.
"Microsoft has been waiting on the sidelines until its gaming console and software business reached sustainability, all the while watching closely how Nintendo and consumers in general would respond to Sony’s PSP," said Thomas Wolf, a portable media analyst and co-author of TDG’s latest report. "With global PGC revenues expected to reach $3 billion annually by 2008, and with only Sony and Nintendo active in the PGC space, Microsoft has before it an incredible opportunity. It has a critical brand presence in the console space, the breadth and depth of gaming titles, and the marketing clout necessary to enter this space and win decent market share."
That’s no surprise. Figures within the industry, including the well-sourced Dean Takahashi, have long been speculating about this rumor, but all previous attempts to bring the subject up with the creative minds behind the XBOX have only garnered vague responses.
For now, the existence of a handheld console from Microsoft can neither be confirmed nor denied. However, considering that they used the same evasive approach before announcing Halo 3, it’s safe to say that they may be just feigning ignorance.