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Portable Xbox could be media-free

With the Zune announcement today came much speculation that the company that used to be known for powering other company’s devices is working on a portable game system. This would likely be somethng at least as robust as the PSP, the weakest link of which is the UMD distribution system. With Bill Gates having decried physical distribution, now would be an ideal opportunity to distribute games the way Zune would distribute other forms of media. Such a radical move would cause retailer revolt, but it could also pave the way for a much sleeker portable gaming system that offered a great user experience in terms of the flexibility to carry along a wide variety of games in flash or a an entire catalog on a hard disk.