If Microsoft was smart, they'd make a full fledged Windows Phone/XBox branded gaming tablet and phone and just sweep the rug right out from under both Nintendo and Sony who are stuck in the stone age trying to replicate the Game Boy model from 1989.
$4.99-$19.99 downloadable games, Halo, Call of Duty, Banjo-Kazooie, Madden, Street Fighter, XBLA content, etc.
Sleek design, discreet controls, runs the same OS as Windows Phones. No compromise in the phone/tablet experience, it's everything you want from a phone/tablet, similar form factor, just with some physical controls for gaming functionality. It would be a good differentiator from the iOS and Android phones and tablets too and give Windows Phone OS a tangible feature no one else has right now.
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