Sega made the Gamegear, Sony made the Playstation Portable, and Nintendo made the Gameboy and Nintendo DS. However, there is no Microsoft Xbox handheld.

I think I rememebr Microsoft saying they would not currently enter into the handheld market because Nintendo had such a strong grip and they compared Sony's PSP to a competitor releasing an OS and expecting it to compete with Windows.

"History" tells us that to break into a segment of the gaming market requires having the right product, at the right time for the correct price. Several companies have attempted to break in but it usually results in massive losses for the company. Currently Microsoft has a very expensive foothold in the home console market and it would be very risky to attempt to enter the handheld market at this time.

Personally, unless you have a fantastic idea for a portable, I think it is foolish to challenge Nintendo in this market; there is little chance that you can produce a higher quality total product (hardware+software) to Nintendo in this market.

Rolstoppable is right. MS are not in video games for gaming. They want to protect Windows as the #1 home platform and win a share of the emerging digital download market. Unlike the iPod (countered with the Zune) or the PS2 (countered with the XBox) the Nintendo DS is not a threat to Windows, because Nintendo see themselves as a game company exclusively.

would I want 1? Yes Think about it, it would be a psp with a touch screen, with decent shoulder buttons and it would cost about the same as the PSP, uses flash drives and hardley any loading times

No there won't be one and it would be a terrible move too since the hand held market is barely handling two different ones right now (aka DS outselling PSP vastly).

no. Work on the 360, and after the zune failure i don't know if they want to go play in the handheld market.

Let´s hope they stick to the console market. That way, well get Blue Dragon spinoff for DS and the mysterious games that Bioware´s DS division is workin on. And who knows, maybe that "Halo DS"game that was rumoured some time ago becomes true. Seriously, if that game turns out to be real, then DS will be the biggest seller in history, by far.

psp doing horribly? please.  it is selling 1:2 against a company that used to have a monopoly.  if that isnt amazing than tell me what is.

onto the topic.  i dont want there to be an ms handheld because that would take sales from the psp and give nintendo back their monopoly.  this is a market decision for me. 

Well, MS had talked about adding gaming capabilities to their Zune. Its like they are trying to take down IPods and DS's in one blow, though neither will occur.