Microsoft corporate vice president Shane Kim confirmed that Microsoft is committed to entering the handheld consoles market.
"For us, it's a matter of focusing on 'when', because if we chased after a mobile or handheld opportunity, we would not have the resources and ability to do things like Project Natal," he said.
"So we've chosen to focus on the living room experience from a hardware standpoint, if you will, but we're building a service in Live that will extend to other platforms. No question about it."
"We understand that customers don't want an island experience, they want to be connected to the rest of their lives... So the question will be, how do we enter into that market - do we do our own device, do we create our own phone - that's a question for the company itself - do we continue to go down the Windows Mobile path which is that path that we're on today?"