More details are emerging about the upcoming Microsoft iPod-killer DAP. It looks like Microsoft has bigger plans than initially thought. “Project Argo” is supposed to be a complete line of new digital-media products that will fall under the Xbox brand. The Microsoft DAP is part of this lineup but there may be other devices either at launch or later. Aside from Wi-Fi connectivity and video support, it appears that this device will also be to play games (built on Microsoft’s XNA toolkit.
On top of that, Engadget has landed a picture of one possible version of this Microsoft DAP. It looks like a 4:3 aspect ratio display and Engadget guesses that it could be as big as 3.5-inches.