Microsoft working on an iPod killer

I have a PodZinger RSS alert feed for the term “xbox” so that I can keep up on xbox news.  As I was checking my items this morning, I noticed an interesting video podcast from Attack of the Show from last Friday.  They had Dean Takahashi on, and he was talking about why he believes Microsoft is working on a handheld, an “iPod killer,” that will have video, music and games. 

Dean has been working on validating this rumor since last December, when there was an Xbox reorganization.  You can read Dean’s full story in the San Jose Mercury News blog.