Microsoft Mulling Portable Xbox (Seriously)

From BusinessWeek today comes the news that Microsoft, all aflutter over the success of the iPod and PSP, might want in on the game. BusinessWeek says that while Microsoft has stopped short of announcing their intentions to create a game/music/video hybrid device, they have indeed put together a team to investigate, quote, "the business end"* of such a move.

What makes this story more than idle speculation is that Microsoft reps have commented extensively, rather than give the usual "we don't comment on rumors" response:

Xbox boss Peter Moore says any Microsoft media device would have to leverage the company's most significant consumer strength, video gaming. [...] Microsoft would probably use the Xbox brand to market the gadget. "I think the brand is an opportunity," Moore says.

And then there's this little snippet, which suggests that Microsoft is indeed realigning "the business end"* of things such that a push to create such a hybrid all-in-one device would be streamlined from an organizational standpoint:

The company gave some clues in December, when it put its digital media software unit and its MSN Music service under Robert J. Bach, president of the Entertainment & Devices division [and former Chief Xbox Officer - CK]. "It's a lot easier to talk about the end-to-end scenarios, because it's all under Robbie," says Microsoft's Moore.

PSP, meet Xboy.

*lol