Okay, so it's not called the Xboy (personally, I prefer Xblock) but it's coming! According to Microsoft themselves they are working on a portable gaming system to rival Apple's iPod and Sony's PSP. It'll play music, movies, and games. It's been in development since mid-2005 and is being headed by the team that made the 360. It should be available next year.
If this news is false, don't blame me.
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