Maybe they are not going to sell a device, but maybe a "platform". Phones are getting really strong so they maybe make Windows 8mobile, and they could buy some exclusives for they platform just like they did with the xbox before. I think that´s the future for portable gaming devices. Like what Sony is making with their PS certifcate and PS SUITE, but taken even further.
Sony is doing this because I think that deep inside they now portable gaming devices will disappear. The big problem for Sony is, that the market right now is saturated with Android and IOs, so it is really hard to make a new OS for telephones if you dont have the Billions M$ has.
Devices with one exclusive purpose are fading away. Even the mighty Ipod is useless now because you can do even more things with your Iphone/Android phone.
I wanted to believe the scenario would be different, but looks like the portable gaming future is creepy. Smartphones are everywhere sadly. (I dont have one, and seriously; I dont give a damn about them; I just have a normal cellphone in order to make the calls I need).
I even think that Sony is doing the PS SUITE available for all Android phones, so that the application can become popular enough, with all the great exclusives games they have, so that they can eventually begin to charge for the APP like 10 bucks; or maybe it will just stay for free but will earn lots of money in game sales. Also by doing that, the prices of the games will be cheaper because of the massive amount of people that will buy them.
If that is the case I will buy a Sony tablet that has connectivity with a PS3 dualshock controller and with a fussion of the PSN of the smarthphones with the PSN of the PS3/VITA. Hopefully Sony will still be making amazing first party games by then.
Both Sony and M$ are thinking about the same future, but are taking different paths because one has LOTS of money and the other doesnt :(.
IMAGINE THE TV ADDS:
PLAYSTATION SUITE EXCLUSIVE FOR ANDROID SYSTEM
for 9.99
beep
Playstation
Sony (make. believe)
(With some awesome trailers made by Google and Sony in partnership)
So in other words I think that M$ in thinking about how the future of portable gaming will be, just like Sony. Even if Sony doesnt have a sucess with the Vita, the will have sucess in the next generation because of this; and although Nintendo is having such a sucess in portable gaming, they will crush and burn in the future because of not contemplating the possibilites......unless they release a smartphone lol.
Even now that ONLive is on tablets and phones, people can Batman, Deus EX, Assassins Creed on the go instead of playing nintendogs!!