Microsoft has finally launched a portable Xbox.  It’s neither a dedicated gaming device like Sony’s PSP or Nintendo’s DS nor just a casual gaming platform like the iPhone/iPod Touch.  The software maker has fully integrated its Xbox Live experience into its upcoming Windows Phone 7 operating system– every WP7 phone will be able to play Xbox Live Arcade-style games with graphics reportedly exceeding anything seen in mobile gaming so far.  The platform includes avatars, achievements, and more, though head-to-head multiplayer is not on the cards for the initial version.

Microsoft revealed over 60 launch titles, including Assassin’s Creed, Crackdown 2, Castlevania, Earthworm Jim, Guitar Hero, Halo: Waypoint, Splinter Cell, Star Wars, and more.  Let’s just say it’s a pretty solid lineup.

Head over to Engadget for a full preview of what Windows Phone 7 gaming will have to offer.