enrageorange on 28 December 2011
There isn't much money to be made with a dedicated handheld. The system will have to be sold at a loss to have any chance of competing with the 3ds. There aren't countless of perpherials that can be sold for a handheld to help them make back the money. Other then Fable, and a Banjo game, Microsoft's exclusive lineup is not well suited for a small screen handheld. I really can't think of anyway a microsoft handheld can be profitable, or lead to something that will be profitable. What microsoft could do is work with their partners to make windows 7 phones with better performance, and try to develop some handheld quality games exclusively for windows phones.
