In a recent press release from troubled chip maker (and ATi owner), AMD, entitled AMD Drives Industry Efforts to Enable Console-Quality Games for Handheld Devices, is a nugget that suggests that Xbox 360 fans could soon be getting involved in “my handheld is better than yours” sessions with Nintendo DS and Sony PSP owners.

SPOnG, however, doubts that we'll be seeing such a device in the near future.

Although the release leads off with the statement that, “AMD is working with content developers now in preparation for the arrival of phones powered by AMD’s next-generation graphics technologies expected next year,” if you delve further into the statement, the following gem can mined:

”These technologies will include support for both the OpenVG 1.0 and OpenGL ES 2.0 graphics standards, and will incorporate the same AMD patented Unified Shader Architecture that drives the visual experience behind the Microsoft Xbox 360 video game and entertainment system.

“AMD has launched a comprehensive suite of tools that includes RenderMonkey, a shader development tool to help developers create visually compelling characters and environments.

"The RenderMonkey tools for PC and console game development are an integral part of the development process for leading game developers worldwide. RenderMonkey 1.7 adds support for mobile content development including full OpenGL ES 2.0 shader support.

“Leveraging unique expertise in both graphics processing technology and the handheld market, AMD will offer a common toolset and common graphics architectures to empower the delivery of advanced, innovative hardware and true console-quality mobile games.”

So, in short, this is about a set of tools based on open-standard software architecture, with the Xbox 360 throw-in because, well, it’s got some decent history for AMD via ATi. But for now, let's not get ahead of ourselves on this one. Although the handheld market is healthy, the chances of Microsoft throwing more resources into its game division for hardware is about as likely as the Zune taking over from the iPod.

But AMD is need of big wins right now: it's still chasing Intel over a two year-old anti-trust, and is not exactly on the best of terms with Microsoft over Vista. It also declared a $166 million (£86-million) loss for its 2006 financial year. This week is also issued a profits warning, saying that it unlikely to meet the first-quarter revenue forecast of $1.6 billion (£825-million) to $1.7 billion (£876.6-million).

You can read the full release right here.