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Vita came before Switch and SEGA Nomad came before Vita and TurboExpress came before Nomad. The idea has been done before but never that well and Nomads case poor timing and price plus batt life. Switch put the nail in the coffin for Vita. I love the Vita but Switch is a fully realized version.

Dreamcast kinda did with VMUs and then Sony copied that with PocketStation. Dreamcast also connected to Neo Geo Pocket with a link cable like how Gamecube to GBA. The idea of taking your console game with you has been attempted many times but with Switch the tech finally allows it to be viable.

 

I don't see how MS could. They don't make portable game machines and they would not succeed either esp as the biggest market for those won't buy Xbox products at all. No I MS and Sony will go the Power route  they have been.