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The long-rumored Microsoft handheld won't be announced or make an appearance in 2005. With Xbox 2 the hot topic for the year, Microsoft can't split exposure with a handheld launch. Just because there's silence from MS on the "Xboy," however, doesn't mean it's not going to become reality. For years, sources inside Microsoft have suggested that the company is seriously considering the handheld market. Some joked that "We have a handheld -- it's called the Pocket PC." The fact remains that creating the ultimate gaming handheld would help Microsoft in the long term. The Xboy, though hopefully with a much snazzier name, will happen in 2006 or 2007 with extensive interactivity with Xbox 2.
Source: IGN
Source: IGN