So we (the gaming community collective) keep asking Microsoft over and over again if they are making a handheld to compete with Sony’s PSP and Nintendo’s DS.  It seemed quite likely at one point: the 360 is on fire in most markets and has been much more successful than their first console. Additionally, the Xbox division itself is an attempt on Microsoft’s part to expand its horizons, so why stop with the home box?

Stephen McGill, head of the UK branch of the Xbox branch of Microsoft (say that three times fast), has once again conclusively denied this relentless rumor with this short but sweet statement: “No thank you, we’ve got plenty going on with the 360. We don’t want to get distracted by going into the handheld market.”

Honestly, given the rocky nature of the Zune competing with the iPod and their relentless attempts to get people to like Windows Mobile, who can blame Microsoft for not wanting to get into portables? Microsoft’s strengths do not suit a portable well, nor do the type of games that tend to appear on Xbox consoles.

Can we give up on this already? Do we need another handheld to crowd up GameStop even further?

The Gadget Show via Kotaku