An article in Playful asks whether Microsoft would be wise to unveil a portable entertainment device, which would reportedly compete directly with the Apple iPod. Though Microsoft has made a splash in the gaming world with its Xbox and now with the Xbox 360, the author questions whether Microsoft has what it takes to compete in the portable arena.

After 6 years, the iPod continues to dominate the MP3 players market, despite the efforts on more entertainment-focused companies, such as Creative, Philips, Samsung, iRiver or Toshiba. For Microsoft, the digital entertainment market is still something new and even the fate of Xbox 360 is still unclear, until Sony will unveil its gaming console, PlayStation 3.

According to Peter Moore, one of the big-wigs at Microsoft, the company is poised to compete in the portable video game world as well, competing against Nintendo and Sony in a very competitive market. I don't know myself, but with shortage problems still plaguing the Xbox 360, and Microsoft with its hands plenty busy launching Windows Vista, I just can't see them launching a portable to compete with ANYBODY at the present time. What do you guys think?

[Via, Playful]