This looks to be announced very soon and the rumours are very solid.

J AllardHas been the lead in both the xbox and xbox360, if you know your history about the 360 you will know he was the person striving for the look and feel it has today and worked very hard on the project, and when ever they talked about about the 360 or showed it off, he was there.
At E3 and recently he has been know where, he has not done any interview or appeared at any event.
The guy has not been sacked and is still a key figure, so where is he?

As you may or may not know many sites have reported on how MS has done deals with new companies who specialise in mobile hardware, that has led to the rumour of the handheld, Bill Gates has also hinted as he always does.

What for me holds water is J Allard, He is no where to be seen and must have a tight deadline if he has been told to produce a Xbox handheld. I suppose they have to do this soon, Sony will allready be working on a PSP 2 or at least a PSP version 1.5. Nintendo have still sold and people not complained to much with their update models so Sony could get away with it.

First thing you think of in your head when you think Xbox handheld is "big, bulky, ugly" and i am sure they know this and it will be one of the first hurdles to avoid. Next would be the media they use of course, lots of options all have their good and bad points.

Cant wait to find out more information about it, I mean I dont think I will get one but just to learn how they go about it and what they do and how good it will be is going to be interesting.