Ed from Brighthand has reported that there are no plans for Microsoft to release an XBox portable:

"With Microsoft itself out of the portable gaming market, the door is open for someone to make a Pocket PC equivalent of the Tapwave Zodiac, a gaming-oriented Palm OS model. Many current Pocket PCs make decent platforms for playing games, but some have called for a device with the extra buttons needed for serious gaming.

Though we now know that such a device wouldn't have to face off against an Xbox Portable, there still would be plenty of competition. There's the already mentioned Zodiac, plus Sony is going to release a portable version of its PlayStation in the U.S. next year. Nokia is expected to announce a new version of its N-Gage in a month or so and, of course, Nintendo currently dominates this market with the GameBoy Advance."

Given recent news of the XNA game development platform, and the announcement of some XBox games already coming to the Windows Mobile platform, I can't see that Microsoft really need to release an XBox portable... others will probably do it for them. After all, there already is a Windows CE .NET based device coming - the GameTrac - that should be able to compete quite well with the Playstation portable, N-Gage, and Gameboy Advance.

The Gametrac features Bluetooth, tri-band GSM/GPRS, a 64 bit graphics accelerator - and GPS. All it needs is games written using the XNA platform, and it will easily fit the bill for an XBox portable, not to mention making all manner of amazing games possible! We've covered it a couple of times now - and it was recently featured at CeBit - and it still looks like a pretty nice device. Just think - an XBox game or two, and this one's sure to become a favorite!

The Gametrac is now set to be released in the UK in Summer (which will be Winter here in the Southern Hemisphere), with international releases - including, it seems, Australia - in Autumn (Spring here). Presented below are some updated specifications - still looking like one serious piece of hardware!

Gametrac Specifications

• 400Mhz ARM9 processor
• 64 bit Graphics accelerator
• 2.8" TFT color screen (240 x 320 pixels)
• GSM tri-band (900/1800/1900)
• GPRS Class 10
• Eight-way D-Pad
• Left and right triggers
• Four face buttons
• Bluetooth class 2 for multiplayer gaming
• MMC/SD Card input
• Integrated digital camera
• SpeakerM
• Temperature range 0C to 55C
• 3D Games engine
• Predictive text input
• WAP 2.0
• SMS
• MMS receive and send
• MP3 playback
• MIDI/WAV formats
• MPEG 4 video playback
• SD flash card reader
• Mini-USB client
• GPS tracking application
• GPS mapping application
• Removable SIM card
• Removable battery
• Polyphonic ring tones
• Stereo headset socket for MP3 and games
• Windows Media Player 9
• Flight mode

Games Confirmed

• Colors
• Stuntcar Extreme
• Speedgun Stadium

Get more details at the Gametrac website!

(Source: Brighthand )