Microsoft exec dismisses Xbox handheld rumours

Neil Thompson, head of Xbox for Northern and Eastern Europe, has dismissed claims made by author Dean Takahashi that Microsoft is currently developing a new handheld gaming system.

In his latest book, The Xbox 360 Uncloaked, Takahashi claims that half of the Xbox 360 hardware team is already hard at work on the new machine - which he says is due to be released half way through the next-gen console's lifespan.

But speaking to gadget website T3, Thompson said: "Weâre not even thinking about that at the moment. Handhelds, in the way you would think about a handheld like a PSP? No."

Thompson went on to say that the company plans to focus instead on improving its foothold in the mobile gaming market, which he believes offers "a really good opportunity to capitalise on the hundreds of millions of handsets that are out there, and give people a chance to connect that with other entertainment experiences."