Microsoft is designing <A HREF="http://www.infoworld.com/article/06/03/21/76658_HNmspspchallenger_1.html">a new handheld gaming device</A> that can also play music and video in a potential challenge to market leaders Sony, Nintendo, and Apple Computer, according to published reports. The company has assembled a crack team of engineers from its Xbox division to work on the product, which may take a year or even two years to reach the market, the reports said. The project is being led by game executive J Allard and directed by Greg Gibson, the system designer behind Microsoft's Xbox 360 console, according to a report in Monday's San Jose Mercury News. Microsoft reorganized its gaming and entertainment divisions to assemble the team for the project, an indication of how seriously it is about building a successful rival to Sony's PlayStation Portable (PSP), the paper said.