With the popularity of the Sony Playstation Portable and the Nintendo DS, it was just a matter of time before Microsoft launched its portable gaming system and now, it has been speculated that Microsoft will be seriously pursuing the development of a portable gaming machine.

“With global [portable gaming console] 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,” report coauthor Thomas Wolf of the research firm The Diffusion Group said. “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.”

Rumors about a portable system have been shooting around for a few months now but nothing has resulted. We will have to see whether this rumor is correct and Microsoft does launch its own portable gaming console to compete with the Nintendo DS series and the Sony PSP.

Nothing has been confirmed from Microsoft at this time and thus, although there is a high chance that these claims are true, nothing has been officially announced and thus we have no information on features, pricing, and potential release dates.

Be sure to check back here for continuous updates on the potential XBOX porable gaming system and all new in the gaming world.

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