Here comes PSP challenger, the latest Microsofts portable entertainment platform. Rumours suggest the handheld will have a webcam and 5-inch touchscreen – that’s half an inch more than the PSP’s panel. And it will certainly be multitalented, as much at ease with movies, music and photos as it is with games.

Heck, it needs to be in order to make people want it: in the words of Microsoft’s games bigwig, Peter Moore, “it can’t just be our version of the iPod.” Whatever the case, it’s likely to be some time before such a device hits the streets – so in the mean time you’ll have to satisfy yourselves by feasting your eyes on our own picture.

[Via T3]