Xbox head honcho Phil Spencer told Bloomberg on Tuesday that "the expectation is that we would do something” when it comes to a handheld gaming device. Bloomberg says that Microsoft is working on prototypes and researching the market, but that Spencer says any retail device is still a few years out.

Microsoft CEO confirms development of handheld Xbox, still in prototype stage. (86 characters) Microsoft aims to replicate Nintendo's handheld success, learning from past failures. (85 characters) Introduction of handheld Xbox may expand market appeal,