The Digital Music market has not been kind to Microsoft, Apple is years ahead of Microsoft and everyone else in the market. Then, again Microsoft was never in the competition but with tons of cash and resources Microsoft is a force to reckon with. Businessweek reports that the Redmond giant is working on a portable media device to rival the iPod. Xbox boss Peter Moore says that the Microsoft Media device will include games. With it Microsoft takes on the Sony PSP and the iPod with one device. However with game capability it will become too bulky so Microsoft might also come out with a non game version.