MS still has a shot at the hand held market, albeit a very weak one.
It pretty much rides with the success or failure of the Zune HD. Sounds like a great piece of hardware on paper, but it hardly matters if it fails to expand the Zune market significantly.
I think MS will probably stay in for the long haul in the hand held device market, but it's definitely a current liability rather than an asset.
And while I won't rule it out completely, I don't see the development and release of a dedicated hand held console as anything more than a reduction of the overall potential consumer base available for media players/smart phones.
Where the AppStore has been the biggest success, is in terms of small developer support. It's the first platform of its type that has allowed so many access to a development and publishing platform with minimal investment or resources.
Even dedicated publishers are testing the waters with higher budget efforts (due to the scaled pricing approach to apps).
There will be more misses than hits, since it's very much in a nascent stage, but to completely dismiss the platform for whatever reason despite the growing support is ignoring the bigger picture.
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