Microsoft has announced that they aren't releasing a new handheld gaming device compatible with the xbox360 but a new Zune that is compatible with the 360. It has touchscreen,Hd radio and outputs and internet (which will be internet explorer so very easy to use) It is pictured below and looks nice but the screen seems weird I dunno but its like the font is to big.
http://www.engadget.com/2009/05/26/zune-hd-is-official-heading-your-way-this-fall/
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