I personally believe an Xbox handheld would do quite well. Believe it or not, Microsoft has an entire belt of games that could be accessable for a handheld. Think of being able to play all your XBLA arcade titles on the go.

Also, they could have Rare work on platformers for the console, as well as a Killer Instinct. Imagine playing a new Conker, Banjo & Kazooie, Killer Instinct, Kameo, etc. Those games would be perfect fits for a handheld. Also, Halo Wars 2 would be cool.

What do you think? I think there is potential. Also, do you think it would sell well?

Handhelds are a shrinking market, aggressively targeted by the mobile, where even experienced players like Nintendo are losing market share. I really don't see the handhelds as the product of the future. Plus without Japan it is also hard to even contemplate a successfull handheld. MS is not big in Japan. So no.

It would be a disaster they have less IP's then Sony. HAndhelds are big in japan where MS is non existent.

They already have entered the handheld market..

Judging what I've read from more than a few Xbox elitists here, they don't want their favorite franchises on a handheld. They are perfectly fine using their phone to play Angry Birds as their handheld console.

Imo, there definitely is potential. But the mobile market is too risky to get into right now (with a dedicated handhaled console), so it's probably not the right financial choice. Even with such first party games, it wouldn't make a big splash imo. They will need big full budget Halo and Gears games to succeed.

It would be interesting to see but i don't think Microsoft would be able to support it properly. They can barely support one format at the time. Look at what happened to the Xbox 360 first party support in the last few years. It's probably beyond a dedicated Xbox handheld now. It seems Microsoft are using WP8 as there "handheld" anyways

handhelds are doomed.
They have windows phones. Now they only need controllers like iphones has and some more games

Windows phone/surface games do the job.

They know Xbox gamers buy 3ds's :)

Beat me to it.  M$ has millions of phones out there, and if they want to, they will just execute the xbox gaming portal on phones better.

No