http://www.gamesindustry.biz/content_page.php?aid=16719
Author Dean Takahashi has claimed in his new book, The Xbox 360 Uncloaked, that half of Microsoft's Xbox 360 hardware team has moved onto a portable hardware project - designed to compete with Nintendo's DS and Sony's PSP - since the launch of the next gen machine.
Takahashi claims the team was split in two following the launch, leaving the other half to work solely on reduced production costs of Xbox 360.
According to the writer, the portable is planned to be released halfway into Xbox 360's lifespan, a strategy to assuage the crippling costs of moving through hardware cycles. Sony, obviously, has employed a similar approach with PS2 and PSP.
