It will be flop. Xbox brand is not popular enough for handheld ver to be success. The reason PSP was successful in terms of sales and games is because of PS brand. Nintendo still to strong to beat i this division. Thought is still prefer PSP over NDS.

i dunno, i don't they will be able to make as small or nice as nintendo or sony portables.

though many of the handheld sales come from japan, it will be third, long way third especially since microsoft doens't have studios.

and they have problems to work with underpowered CPUS.

if they did they would have to transform it into being primarily for younger kids. That is why DS / GBA sell so well. Parents buy them for every kid in their household. I know handhelds are also popular with all age groups but the primary user is not the xbox 360 crowd.

I would probably get one if it could also act as a zune. I have liked my zune and want a zune hd

Ppls already said this, the Zune HD. Well its not quite there yet, but they are moving (maybe):

Microsoft confirms Nvidia 'Tegra' chip for Zune HD
http://news.cnet.com/8301-13924_3-10269713-64.html

Matt Akers, software development engineer in test at Microsoft said: "So much better battery life, graphics acceleration. This thing's like a mini laptop in your hand."

If they moddled it after the Xbox 1 there would be a lot of possibilities.

Easy straight ports from Xbox 1 and PS2 for instance, could be a pretty nice platform. I'm not familiar with Zune HD, but I heard it was going to play some games. Perhaps they could expand on that?

It would look like an iPhone with 2 sticks and terrible build quality somewhat remedied by an extended warranty. I jest.

Seriously though it really depends- but I don't see MS going with a dedicated device when the market it pretty stagnant and moving to cellphones.

unless microsoft GREATLY expanded their 1st party developers, it wouldn't do too well. gears/halo can only carry a platform for so long.

If SONY can't get third parties to develop for the PSP, I don't think Microsoft would have much luck either.

I hope they don't though. I need more viva pinata on the DS :D

I would laugh!

The PSP was successful?  News to me