Cor. Microsoft is making a ZunePhone with Xbox 360 branding to blow N-Gage and iPhone out of the water in the mobile gaming stakes.

It's got a huge widescreen display, can run Xbox 360-quality games and... Oh.

Okay, so this is just a concept design drawn up by those cheeky fellas at gadget magazine T3. Their aim is to show what a dedicated Zune/Xbox handheld gaming device might look like.

Pretty purdy, eh? Presumably the mobile connectivity would be used for multiplayer gaming and connecting to the Xbox Live community.

The downside? Microsoft has consistently denied plans to make an Xbox-branded handheld, and while it has announced plans to let developers create games for Zune, they're more likely to be the casual fare seen on iPod.

Still, for those of you who dream of playing proper Grand Theft Auto IV on a handheld, head here for more concept pics of the device.