Almost since the launch of the original Xbox there have been rumors of an X-Boy or some other cleverly titles portable gaming system. While it seems that every major console manufacturer must eventually dive into the portable market only to be eventually rebuffed by Nintendo, the rumors have persisted without much to actually show for them. That all changed this week when Microsoft added games to the Zune music player.

To be fair, the Nintendo DS and Sony PSP are hardly shaking in their boots at the arrival of Zune games. They’re more on the level of the games already offered on Apple’s iPod. Still, the games are being developed using Microsoft’s XNA Studio, the same system used to develop titles for Xbox Live Arcade and the PC. Does it sound like Microsoft might have some big, long-term plans for XNA?

So, it isn’t exactly the X-Boy many had hoped for. Yet, the full force push behind XNA may spell trouble for both Sony and Nintendo. While Nintendo’s dominance of the handheld market seems fairly cement, there is definitely room for a competitor to chip away at it. Sony has fumbled their way with the PSP and will almost certainly try with a PSP2, but a Microsoft developed system could make a large impact by trying new things neither Nintendo or Sony are ready or willing to.

Perhaps a completely flash memory based system where all games are downloaded? Integrate that with the Zune music service and you have a pretty good deal, and perhaps even a competitor for the Apple iPod. Of course, Apple has their own rumored console/handheld to possibly content, the Apple iGame. Regardless how things turn out, the handheld wars look to be heating up.

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1. Sony confirms Xbox 360 looking Blu-ray
2. E3 2008: Microsoft press conference review
3. Sony’s clever plan for the PS3, your new center of entertainment
4. E3 2008: Nintendo press conference review
5. Of course Sony is going to offer downloadable PS2 games

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