So it turns out it's HP, not Dell, that wants to get into handheld gaming. Word has it that HP Labs is working on a gaming platform dubbed Mscape, which would rely on GPS sensors to allow for location-aware adventure games.
So for example, let's say you're playing a game and happen to walk by a landmark or a city park. Small sensors would trigger an action in the game, like maybe a hidden level or boss. HP has been working on Mscape for the past two years, but it looks like things are progressing rapidly, which is good news for them and us.