Here's a juicy morsel for you: in his new book, Xbox 360 Uncloaked, gaming industry author Dean Takahashi claims that half of Microsoft's original Xbox 360
development team began work on a portable console immediately after the home system launched, while the other half was tasked with driving down the 360's production costs. Takahashi goes on to say that the big M plans to follow Sony's lead and release the handheld Xbox
halfway through the 360's life span, which would help offset hardware cycle costs and maintain buzz about the brand. The supposed Xbox2Go (that's what we'll call it for now, anyway) would likely be released into a competitive landscape filled with PSP2
's and who knows what kind of crazy Nintendo portables, but Microsoft has certainly shown that it's in the videogame, uh, game, for the long haul, so we wouldn't be surprised to see them pump these kinds of resources into the project if it does in fact exist. Oh, and before you start commenting on the device's "design," please note that the above picture is simply an artist's conception created before any word of this got out.