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XBox 360/Zune Mashup Device Coming?

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Is Microsoft working on a device that combines functionality of the XBox 360 and Zune? I don't even know what the hell that would be, but maybe.

The project, codenamed "xYz," is said to feature a WVGA touchscreen and a way to play music and movies on both the device as well as the Xbox 360. Basically, it's going to be a connected handheld gaming system with rich multimedia features.

Eh. Also, "xYz" -- what a horrible codename. I can already think of like a million better ones. Including, and pretty much limited to, "Project Zune Liquidation".

xYz handheld rumored to combine Xbox 360 and Zune [dvice]

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