Portable Xbox is a certainty (says Microsoft)
This is just a handheld concept (not from Microsoft)

Shane Kim (Microsoft, Corporate VP) has told kikizo that a portable xBox is only a matter of “when”, signaling that Microsoft intends to get into that market. If we were Microsoft, we would be looking at re-using the hardware (Nvidia Tegra) and software from the Zune HD to build a game platform. We wonder if Microsoft will use Windows Mobile, which has been a pitiful game platform so far.

Shake Kim also capitalized on the Project Natal buzz, and re-iterated Bill Gates’ view that Natal would be everywhere at Microsoft. He mentions that Natal leverages assets from the whole company, like the voice recognition and so on… We heard otherwise: the core team of project Natal is actually very small and these guys really deserve the credit that is due for pulling Project Natal off the ground and into the light. Anyhow, let’s wait and see what Microsoft will do with the portable Xbox. That market is just too juicy to be left untouched.

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