I haven't read the entire thread.... but doing a pure handle ala vita or DS is not a good idea IMO for reasons given by others.... ( shrinking market, japan not an MS friendly country etc) on the other hand now that they have a Nokia phone rights for a decade and are involved into portable PC hardware.... they could do a nice phablet (PC?) that is optimized for gaming especially with intel coming up strong with x86 lowpower chipset.... maybe they could find a way like you said to port easily the arcade portfolio to the windows store or something... especially after windows threshold releases, if indeed the market place finally converge in one harmonious ecosystem.... this could be a nice alternative to a pure handheld for gamers that still want a phone or a tablet but not a second device for gaming on the go
