Via Scoble, I ran across this Seattle PI story about the MS Origami - a device that's still under development, so all the rumors swirling around should be taken with a rather large grain of salt.

Having said that, I'll toss my 2c in anyway. Look at the penetration of the Sony PSP and of the Nintendo DS. The PSP is doing ok, but the DS is a huge hit. Why is that? I think it's because the DS isn't trying to be too many things at once. It's a portable game platform first, with any and all other functions being secondary. That doesn't split the focus of the device, which is something that Sony has had a few issues with. That's the kind of use model confusion that could crop up based on this:

The video is still worth seeing. It validates the notion that the Origami project is headed in the direction of a miniature "lifestyle" computer, not only for playing music but also for other functions. Internet access, messaging, photo editing, and video gaming are among the uses depicted in the video.

I guess we'll find out.