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@DarkDecent666

1. MS sucks at making hardware, their handhelds would probably break if you tossed it on your bed.
2. MS has next to no studios and can't even get a decent line up of 360 games they'd never be able to manage 2 gaming devices (even sony had trouble)
3. Not a single one of MSes higher selling franchises are portable friendly
4. Japan is the biggest market for portables, you know the one MS fails in
5. Nintendo dominates the handheld world and pretty much always has, Sony made some headway but MS would never be able too.
6. It would weaken their promotion of their phones

1. Microsoft would simply make a proof-of-concept for phone manufacturers to build.
2. A handheld would likely be based on WP8, which will likely offer code compatibility with the next Xbox as well as Windows 8. In addition, it would likely offer backward compatibility with Xbox 360 games.
3. Microsoft doesn't need Halo or Gears of War on a handheld, but having said that I'm not sure how one can justify saying that when Microsoft hasn't even created a proof of concept that would depict how it would duplicate analog sticks, a d-pad, or bumper and trigger buttons.
4. The reason why Microsoft isn't doing well in Japan is because it lacks a portable device. Where as in several respects Sony and Nintendo have been fighting last generations war here, Microsoft has been fighting its own last generation war in Japan. The Japanese people have gone mobile, and lacking a serious mobile gaming platform has hurt it. Had Microsoft offered a mobile gaming platform instead of a home console, I recon it would have done better in Japan.
5. The Xperia Play is where Sony should have put its money, not the PS Vita. The 3DS and the PS Vita will suffer from a successful mobile phone/gaming platform. Regardless of whether that comes from Microsoft, Sony, or Apple. Dedicated devices rather than phone/gaming devices are where the future lies.
6. Not if it used Windows Phone 8 (WP8). It would, in fact, strengthen it.