Its a strong rumor. Personally i think its a big mistake on MS's part. This is the picture thats been shown. Normally Ms says it doesn't comment on rumors and speculations, however when the picture was released, they made sure to comment that was just a test and that isn't the finalized form factor. So what does this tell you? Well find out in 3 days
The official story: See below.
What we heard: Ever since CES in January, rumors have been circulating that Microsoft may soon enter the handheld market. Most of these sprung from a BusinessWeek article which cited an anonymous source inside the Redmond, Washington-based software colossus as "working on plans to develop its own portable digital media device to rival the iPod." Speaking hypothetically, Xbox marketing chief Peter Moore said any such device would also have gaming functionality. "It can't just be our version of the iPod," he told the magazine.
At the same time, one of Microsoft's signature teaser Web sites sprouted up at the URL http://www.origamiproject.com. Via some slick flash animation, the site asks visitors "Do you know me?" "Do you know what I can do?" "Do you know where I can go?" It then promises that, "You will ... Learn more on 3.2.06."
Given the looming launch of Windows Vista, many assumed the site was part of the effort to help hype Microsoft's new PC operating system. However, over the weekend, reports surfaced that Project Origami is actually the code name for a new portable which combines media-player and PC functionality.
The evidence came in the form of a video clip that was uncovered on the Web site for the film-production company Digital Kitchen. The clip, which has since been taken down, showed a "concept device ... noticeably larger than the iPod and somewhat bigger than Sony's PlayStation Portable," according to the Post-Intelligencer. The video also "shows people using the device not only as a music player, but also as a miniature personal computer for accessing the Internet, sending e-mail, editing photos and playing video games."
What games, you ask? A copy of the video viewed by GameSpot clearly shows a user playing what looks like a handheld version of Halo in a train station, and an image in the Post-Intelligencer's gallery of stills also shows the Bungie game on the portable's screen. Unlike the side-scrolling spin-offs that were once-rumored to be coming to portables, the Origami Halo looks much like the same graphic-intensive first-person shooter that has become legendary on the Xbox and PC.
[UPDATE] However, it remains unclear when--or if--gamers will be able to get their hands on a mini-Master Chief. Instead of busting out the usual "Microsoft does not comment on rumors or speculation" boilerplate, reps for the company admitted the video was legit. "While Origami is a concept we've been working on with partners, please know that the video seen on Digital Kitchen's web site is a year old and represents our initial exploration into this form factor, including possible uses and scenarios," a Microsoft rep told GameSpot.
Though reps wouldn't comment on the Halo footage specifically, their references to "possible uses and scenarios" means the footage was likely for demonstration purposes only. "Everything in the video was 100 percent pure concept, so take nothing as an indication of what may or may not be in any such final product," a source close to Microsoft told GameSpot. "I'm sure they just took some Halo footage and stuck it in there since it's a Microsoft property."
So will the portable device have gaming functionality? Hopefully we'll know soon. The reps also said that details on the Origami Project would be revealed "in the coming weeks." Maybe they should've said "the coming days," as the date on the origamiproject.com is this Thursday--less than 72 hours away
