Microsoft working on PSP rival

By Derek Sooman on March 22, 2006, 10:05 AM
Seemingly, Microsoft is to work on a new handheld gaming device that can also play music and video. The device will compete with offerings from market leaders Sony Corp., Nintendo Co. Ltd. and Apple, but may take a year or even two years to reach the market.

Trying to build a device that combines both gaming with music, and even video as well, may not be the answer, said Daren Siddall, a principal analyst with research company Gartner Inc. The trend in music players is towards small, while gaming machines need to be big enough to accommodate comfortable controls, he noted.

"When you start converging the devices it becomes much more experimental. You have to compromise somewhere," he said.

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