Microsoft’s development of a handheld device may just be the worst kept secret in the history of gaming.  Everybody knows it’s coming, it’s just a question of when.  While we still don’t know the answer to that question, we do have some new information on what this handheld may be capable of.  Reports surfaced last week that Microsoft’s new portable would be a direct competitor to the iPod, not the PSP or DS as previously thought.  Well, it seems that may not be completely accurate.  Brier Dudley of the Seattle Times is reporting that Microsoft is actually developing several products branded with the Xbox name to compete in several different handheld spaces.  The project has been given a codename of “Argo”, a name that will likely never see the consumer (i.e. Xenon, Revolution, etc.)  This is all pure conjecture at the moment, however, as Microsoft has yet to officially announce anything concerning portable devices.  If true, this means that Microsoft may be competing with the iPod, PSP, DS, and other portable entertainment devices in the very near future.  It hasn’t taken long for Microsoft to position itself as a console leader in the very competitive gaming industry.  If enough resources are given to “Argo”, you can bet they will be a fierce competitor on the portable media and gaming stage as well.