It would be a disaster for Microsoft to release a handheld now, they're already trying to compete in the ipod market (yes they have that much of a monopoly the market should be named after them) and with both the DS and PSP showing very strong sales the competition is just too great. And I think the DS is holding the majority of the younger handheld market while the PSP is more cut out for the older gamers, so it would be very hard for them to find a niche.








