Microsoft, Transmeta collaboration: A handheld Xbox 360?

WHEN WE were at IDF earlier this week, we asked respected industry analyst Peter Glaskowsky what he thought Transmeta might be doing with Microsoft - it has seconded 30 engineers as we reported a few weeks ago.

Now this is speculation, but what Peter had to say was quite interesting. Transmeta is really good at producing efficient low power consumption stuff. And the only direct connection Microsoft has with chips is the Xbox 360. Transmeta engineers wouldn't be producing efficient low power consumptions for Microsoft mice.

So what if it was, instead, contemplating a handheld version of the Xbox 360? It certainly would make a lot of sense.