Microsoft won't do it. As it is Rare one of their 2nd parties is releasing games on the DS.
I guess you could argue that they are testing the market but I don't think so. If they go the same way as the PSP and try to sell a system at a loss and make it up with software sells it will never work for them. They don't have any franchise that they control that could sell a hand-held.
FPS can sell a home consol but they do not do as well on hand helds. Sony's mistake was thinking that the needs in both markets were the same, they know differently now. You can't churn out port or lower powered versions of home systems and expect it to work.
Until Microsoft has had some experience in finding a game the will capture the admiration of the handheld gamer it is not wise to get in the water. Besides the Xbox and the 360 hasn't exactly paid off for them financially. They are still selling at a loss, the X-box never made its money back. The best thing that came from the systems is recognition (as if they need more). Oh, and also they get all of those X-box Live dues.
But this is just my opinion- maybe Bill will.







