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They have some games that would fit perfectly on a handheld like Banjo, Conker, Kameo, pretty much any rare game, and they could put some bigger titles like Fable on it and all but the thing is Nintendo dominates this market so much that it would be almost impossible to penetrate the handheld market now. Sony has taken the leftovers and then mobiles will have the social market. Basically at this point it would be MSFT vs Sony for a very distant second place.