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mrstickball said:
Its called the Zune HD.

No company needs to make a handheld gaming device. In 10 years, we will no longer have dedicated handhelds as we know them, they will be integrated more and more into cell phones.

Look at the iPhone install base for proof - we always argue the DS and PSP sale wars, all the while iPhone and Android install bases are outpacing dedicated handhelds. So it really doesn't behoove MS to make a DS-competitor when they merely need to beef up the ZuneHD and Windows Mobile marketplace.

There's a thing the DS and the PSP have that the Zune HD, the Droid and the iPhone don't have: controllers...

DS made popular the concept of handheld games with touchscreen, but they keep the regular controls, so the software companies can use one or both, the result: A whole variety of games, and look at the platform, selling a million on Black Friday in their 5th year... The name says it all: "Developer's System" (and Dual-Screen, both are the official terms)...

PSP can have only games controlled traditionaly, and the rest can only have touchscreen games (unless they use multitouch to simulate traditional), so they're covering only one part of the market...