Why isn't there an Xbox handheld?

[disolitude]

gameonbro said:

Ajescent said:
Windows 7 phone...?

lol beat me to it.  they tried  with the zune.  if zune would have caught on it wouldve had a next gen capable but it never made it.

Initially Microsoft may have thought that Zune MP3 hardware may be a viable business but pretty fast they adjusted their strategy with Zune (2006 and after) After that Zune's sole purpose was to test the market for Windows Phone 7 and future UI software and interface, not to give them a dedicated handheld device in the market. 

Pretty much everything you see in terms of software and user interface on WP7 new Xbox dashboard and upcoming Wndows 8 metro UI, originated from Zune.