A new handheld device, called ZuneX, could be unveiled by Microsoft at this year's E3, VG247 being told that speculation regarding the new combined contraption is merely a "rumour".

Apparently, the potentially fictitious gizmo can play Live releases, with a new article purporting to detail the specifications of the device - and even offers pictures.

Microsoft obviously won't tell us whether this is true or not, but this isn't the first Zune chit-chat we've heard about ahead of E3.

The ZuneX will reportedly include support for the gaming service, as well as boasting media player capabilities. Of course, this could all be a clever hoax. Hopefully we'll find out soon enough.

By Luke Guttridge