I didn't finish reading the OP or read anyone else's post, but I've always thought that Microsoft has no need to release a portable gaming system. They make PCs..........all sorts of PCs, have the X box 360 and make tons of Windows software. If we look only at the gaming side, they currently have 2 very active platforms, PC and the 360. The additional profit (if there will be profit at all) in making a dedicated portable gaming machine to compete with Sony's and Nintendo's won't be worth the effort and research. Besides, a laptop IS a portable gaming machine, right?
And I didn't even mention the windows mobile because like the OP, I don't consider that a gaming platform.
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