They probably want to concentrate on home console. Microsoft also has close to no first party titles to support two consoles.

Plus, the zune who tried to compete against the iphone was a failure.

I'm a little surprised they make Xbox hardware at all. As their plan is to be a software company, I would think they would have a deal with Nintendo or Sony to make their Os and games. They had on with the Dreamcast by Sega stopped selling those, so they made Xbox.

I think it's all phone now. And the Windows 7 phone is about as much as an Xbox handheld as I think we will see for now. You can connect onto Xbox Live, chat with friends, play games that connect with your 360 games (like Fable3). Plus they have a new big deal with Nokia. It doesn’t have gamepads and joysticks, but someone might make one that does.

They don't make computers either, but the stuff that goes on most of them. Zune was different, as they weren't competing with partners but Apple. But they don't see a future for it as a hardware product, so it's being absorbed to the Xbox and WP7.

I think Nintendo miss out by not including a phone on the 3DS. I know gamers will not care, but many of the parents they buy them for their kids would. And they could sell a ‘family’ phone service they lease from Verizion or At&t similar to the plan Disney tried for kids and families. It seemed like value added service.

I think they would rather deal with the software. But companies do change over time - so now they make hardware too (like X360, Kinect, WebCams, etc.) Just look up how Nintendo started; I don't think anyone would guess they would be known as a family friendly gaming company.

I think its best they stick with improving Xbox on WP7 (exclusive games, features, etc.) and maybe make a flagship phone like the Xperia Play for people who would like physical buttons...

1. MS sucks at making hardware, their handhelds would probably break if you tossed it on your bed.
2. MS has next to no studios and can't even get a decent line up of 360 games they'd never be able to manage 2 gaming devices (even sony had trouble)
3. Not a single one of MSes higher selling franchises are portable friendly
4. Japan is the biggest market for portables, you know the one MS fails in
5. Nintendo dominates the handheld world and pretty much always has, Sony made some headway but MS would never be able too.
6. It would weaken their promotion of their phones

???? No just know, competition?? Please they cant f**k with Ninty in the portable market. ATARI, SEGA, Sony, all got washed. Sony did ok but it was still a slaughtering. Hell I dont even think that MS could mess with SOny in that catergory. Dedicated handhelds seem to be mostly popular in the east and if there not buying MS consoles they sure as hell are not going to be buying MS handhelds. Christ, MS hasnt even won a console gen yet worry bout that first.

THIS, just THIS

I think Microsoft may develop something along the lines of the Xperia Play.

Two recent patent applications suggest Microsoft is looking at something that would resemble the Xperia Play. A slide-away screen, and a customizable keypad area which could be used for more than just gaming.

This.

I'm sorry, are you implying that the PSP was not a success? Is this an opinion formulated by yourself? Because selling 71.8 million units in a market dominated by nintendo is damn good and a major success in its own for any company. If the vita can sell 70+ million then it will be a success as well as the PSP.

I once imagined something slightly larger than a Xbox 360 controller with a screen in the middle. It was the sort of design I thought Microsoft should go for if they ever launched a handheld. As other members have said before though, it would encounter the same problems that have hurt the PSP, except to an much more severe degree. I do not want handheld versions of Halo and Gears of War, they would be a waste of time and potentially border on being shovelware. The rest of Microsoft's IP would have the same issues. Overall, they are better just sticking to the home consoles.