Handheld Microsoft

It's reported that Microsoft is planning a challenge Sony and Nintendo in handheld gaming devices. This device is also supposed to go after Apple's iPod dominance.

Well, they may fight it out with Sony and Nintendo and it's only natural to add some more functionality such as listening to music but the iPod business is a distinctly different market.

It's not quite as stupid as the Tablet PC but it will not work as intended.

The real challenge to the iPod business will come from combining iPod functionality in cell phones. That has already started and I am sure we'll see a whole lot more of that down the road.