Potential which Sony has already tapped into, sharing data between the PS3 and PSP. For example, if your PSP has a wi-fi connection, you can stream music and video from your PS3. And I'm sure that, as time goes on, Sony and Nintendo will both add more features to both the handhelds and consoles.

Which then leads me to wonder when, or even if Microsoft will get into the handheld console game.

I know we've already heard rumors of a handheld Xbox but the truth is, aside from the Xbox Microsoft doesn't have a lot of luck with hardware. They are a software company after all. And a lot of their hardware based products have failed miserably.

In reality, Xbox is the most successful hardware based Microsoft product out there, but that isn't saying much considering the hardware is losing money for Microsoft. In fact, Miscrosoft even admits that it'll be a few generations down the road before the Xbox pays for itself.

Will Microsoft get into a handheld? Hard to say. I believe what they may end up doing is partnering with a company that already makes handheld devices to perhaps make an "all-in-one" handheld device.

You know the type - kinda like a blackberry on steroids. One that will do everything including gaming and talking to your Xbox, playing music and movies, and of course acting as a phone. Will such a handheld device fly? Nope, I think either it'll fail miserably, or simply not be used for gaming.

What Microsoft really needs to do is partner with someone for a handheld version of the Xbox. That way the Xbox can truly become a whole home media center. Until then it's just a glorified game console.