The UK’s Xbox head honcho, Stephen McGill, has been busy dousing the flames of rumours all day. First he quashed suggestions that Microsoft was working on a new 360 model, and now he’s put an end to hopes that an Xbox handheld is on the way as emphatically as possible: “No, we’re not looking to do a handheld gaming device.”

McGill was showing off features of the new Xbox Experience update this morning when we quizzed him over a handheld from the Big M in the wake of the new PSP and Nintendo DSi. “No thank you, we’ve got plenty going on with the 360. We don’t want to get distracted by going into the handheld market.”

He pointed out that Microsoft is already in the field with games on Windows Mobile phones, but if you were hoping for Zune alike with touchscreen gaming, it looks like you’ll be disappointed for some time to come.

Out TBC | £TBC | Microsoft

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  • Jay

    Price cuts on the 360 has slimmed down the profit in the name of market share.
    Now is not the time to rip open the loss wound. Now is not the time to upset back room deals. Besides the whole small thing really is Sony and Nintendos strong point. Microsoft would loose support in Asia, which would hurt its xbox business. Dont cross the line and be respectfull for what you have. Sucess for Microsoft is in being a player… not a insulting wet blanket. We bow to Japan for doing what its best at. Microsoft is happy simply being let into the room… never mind a seat at the table. :) No Handheld unless Sony or Nintendo partner up.

  • Ben Sillis

    You’re most likely right of course – though everyone said that about Microsoft elbowing its way into the console market 7 years ago too. But given the DSi’s underwhelming launch in Japan, I still think Redmond could stand a chance if it thought things through. Not that we’ll ever find out!

  • qmox

    I still think they will enter handheld market when sony and nintendo shows their next-gen handheld opening. Xbox360 is starting to pull solid numbers in asia and great numbers in US and Europe so there is room for handheld extension.

  • dude

    i hopefully they decide to make one within the next 2 years

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