Pachter on Microsoft's Handheld Ambition

Wedbush Morgan Securities analyst Michael Pachter comments on Microsoft's possible entry into the handheld gaming space:

"My bet is that it is NOT [a primary gaming device], unless it is some type of hybrid convergence device. I believe that the company is interested in turning the Xbox 360 into a media hub, and they are interested in offering a handheld device that will allow downloading of movies, television programs, music and games. Sort of a reverse-engineered iPod. Although the iPod form factor is exceedingly cool, I think that Apple would have preferred to make the device more game friendly."

Don't laugh. I've been reading Dean Takahashi's new book and there's a lot of stuff in there that points to Microsoft wanting to be in this business -- apparently, they realized how launching a handheld platform a year prior to a console transition gives Nintendo and Sony a profit center that they can focus on during the soft period.