First Origami, now this - Microsoft is getting good at Apple's rumor game. Dean Takahashi has everyone in a whirl after reporting more hard details today in the SJ Mercury News about Microsoft working on a handheld gaming and entertainment device. The device is reportedly aimed at taking on both the existing players in handheld gaming such as Sony and Nintendo, as well as Apple and the iPod - aiming in effect to create a new hybrid category killer. Having seen the early UMPC models, that threat doesn't exactly make us fearful for Sony and Apple, but Microsoft has indeed stepped up its long-running efforts at creating entertainment and communications hardware and software from Xbox to Windows Mobile.

What does this have to do with mobility? A lot if, by the projected launch date of 2007 or 2008, over-the-air (OTA) downloads of content and media are happening with non-phone mobile devices like the iPod. Chances are high OTA will be a major mode of content acquisition by then, and Microsoft will be looking around for partners to help it in this quest to elbow into the mobile entertainment market.

In the meantime, however, we will enjoy the rumor mill going round and round.