Well, it'd be crazy for them to release a handheld at this stage in the generation.
If people calling a PSP which has 20 million sales a failure, than what would they think of the new Xbox portable?
If it were to launch tomorrow (which it won't) it would have to gain 20+ million sales, with no software (if one was in development, a developer would have leaked information), and there's no way Microsoft would sell it at a loss - meaning it would be either expensive or not technically amazing (as the market that M$ tends to go for likes good technology), with no hype. Just to gain second place (and that's if the PSP sells nothing between then - which it would, because Sony would drop the price pretty much instantly after the Xbox handheld came out).
Not. Happening.
Yet.
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