Microsoft is trying to get back at Sony’s PSP gaming market by making their own uber device. The rumor has it that Microsoft is coming up with some sort of a cross between the Xbox and the Zune consoles, which might be codenamed “Zune Phone”.  Even though the leaked image shows a pink colored phone, Team XBox is pretty sure that the device is surely lacking a phone.

The device is codenamed “xYz” for ease in conversations and the device has some ineteresting features. A WVGA touchscreen for starters, which would churn out brilliant colors and a series of brand new hardware features which might currently not be seen on market. The features may include WiMax or GPUs [Graphics processing Unit chips]. It should also feature Live Anywhere apps, which should enable sharing and streaming media from the gadgets around, such as the Xbox or your computer. Basically, it should take over the market that Apple has taken over with it’s iPhone and Apple TV, Sony’s PSP and Nintendo’s DS & Wii.

By the looks of the description, the device sounds more like an overall improved version of the PSP, bascially a PSP with better connectivity options and better output [visual and audio]. This gadget will be useful and interesting at the same time, since the size of the device should be portable and easy enough to carry around than the Nintendo DS or the PSP.  Lets all just wait and watch what Microsoft has in store for us.