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EricHiggin said:

I'm not so sure XB will make a handheld. It wouldn't surprise me that much if they did, because it does sort of fit into play everywhere, but after todays podcast update, their focus was still clearly on performance and power in the future. That doesn't mean they can't have an XBSX2 next gen along with an XBS M or H (mobile/handheld), but after everything else they hinted at, they didn't seem to hint at different hardware at all. They also focused on what made the most business sense for XB, and putting XB games or GP on other (mobile and handheld) hardware makes more sense first, if they can grow that way.

Now if they do decide to make a handheld, I can't see them dropping the S model for an MH model. I'd guess they would just add it to the lineup. 3 'consoles' is pushing the limit as to consumer confusion, but if 1 is a handheld (could be a hybrid), that makes it a bit easier, having 2 consoles and 1 handheld. The XBSS is selling way too good to drop, and how many of those players will downgrade to an MH or upgrade to an X? The X has already been available, though was a bit hard to get for a while, yet even now, X sales aren't taking off. Unless XB feels really confident that most S owners and new customers will just get a MH, they won't and shouldn't drop the S model.

There was a handheld in the Xbox leaks. Also way too much smoke from Phil & other insiders in that regard.

I don't expect them to replace it outright (this gen, at leas) just that it having the same spec as a Series S makes the most sense.