Microsoft wont compete with handhelds. They have allowed Rare to make games on Gameboy Advances in the past  like Banjo-Kazooie Gruntys Revenge and Conkers Pocket Tails. Nintendo have and will continue to dominate that market. Im surprise Sony still try to compete. It is a losing battle. If anything MS will use there Nokia Windows Phones as there handheld gaming devices. They wont make a Xbox Pocket (whatever) as a seperate device. Multifuntion devices is MS's vision.

it would result in something worse that vita, if thats even possible

Yes, it isn't, but to achieve this it had to infiltrate one of its moles in Nokia, sink it and gather what was left of it.
About a handheld, maybe they could make optional add-on gaming controls for winphones and Zune, something like... Circle Pad Pro.   

Microsoft wouldn't make a handheld. They would make a phone or tablet with gaming controls.

I Think they feel that they manage quite well with Windows Phone. Are MS the only one making original games for their portable platform or is the same true for Google and Apple aswell?

How's that windows phone for working out for ya?

Windows Phone anyone ?

I don't really see a market, but I guess they could make a kid's competitor to the 3DS. I think they would use the Nokia division, it would be powerful and with a beautiful screen and indestructible.

But I think it would also be a phone. So not sure if that would count.

It would dominate.......








The bottom of the charts.

Aewsome thanks.