Here's a juicy rumor: could Microsoft be working on a portable gadget that combines the Xbox 360 with the Zune? Maybe....
This mobile platform is the first one to offer HD-video output via a HDMI connector and the visual power of a GeForce GPU in the palm of your hand. The following video will show you how much power we?re talking here:
http://www.youtube.com/watch?v=rQa9nP4yyms&feature=player_embedded
Will the xYz system actually come to exist? Time will tell. There is a whole lot more to this new Microsoft handheld that you have not heard yet, so for the full report and another video, go here:
http://news.teamxbox.com/xbox/19639/Microsoft-Working-on-Digital-Entertainment-Handheld/
The project, codenamed "xYz," is said to feature a WVGA touch screen and a way to play music and movies on both the device as well as the Xbox 360. Basically, it's going to be a connected handheld gaming system with rich multimedia features. Supposedly it will be powered by a special version of NVIDIA's Tegra "computer-on-a-chip".