I did not actually want to report about the new 'Microsoft is making a portable gaming and media device rumor' raised by the San Jose Mercury News yesterday as it is not adding anything to the original rumor besides calling it Xplayer. I just had dinner though and watched NTV (the German CNN) reporting about the Microsoft Xplayer. Mommy, I saw it on TV, now it must be true!

In January we reported about the rumor that Microsoft is going to build a portable media player and game console to fight Apple, Sony and Nintendo. It was initially spread by BusinessWeek. It is as much a reasonable assumption as is that Apple is working on the iPhone.
My guess is that this rumor will sleep again for the next 18 month. And then if Microsoft has been working on it, we might see the first glimpses of it.