It's not going to happen. They would have to compete for second with the already established PSP. In order to do that they would have to match it and they just wouldn't get anywhere because well, they wouldn't be.
They could match everything the PSP is and more and even throw in some of what the DS has and then they would be stuck with an expensive portable that nobody but the hardcore wants. They would eventually have to lower the price and keep lowering the price to make it anywhere near appealing for consumers and developers and it would just be one disaster after another.
See what I did there?








