Gates Drops More Xbox Handheld HintsAccording to a blog entry from PC Magazine columnist Michael J. Miller, Gates spoke at the D4: All Things Digital Conference in Carlsbad, California, where Microsofts head honcho said, "We are looking at various ways to bring more to that [handheld] space. There is a lot yet that hasnt been done." Of course, from those comments you may conclude that Gates thinks Microsoft is the one to do those things that apparently need to be done. Rumors have been flying around for several months about a Microsoft handheld device that would compete with the iPod, DS and PSP. Right now, industry watchers are expecting a Microsoft handheld to utilize the Xbox brand, and be more in-line functionality-wise with the multimedia-centric PSP. Just yesterday, analysts at The Diffusion Group said that a Microsoft handheld would likely launch in late 2007/early 2008. On the home console side, Gates drew comparisons between the Xbox 360 and the immensely successful PlayStation 2. He pointed out that the PS2 came out earlier, was less expensive and smaller than the original Xbox -- three traits that the Xbox 360 has over the rival PS3. However, he believes Microsofts strong online gaming component is the systems greatest selling point.