Well if they came out with a Halo game for it then I'm onboard!

If they would combine it with their new Windows Phone app it would sell like crazy. And the market is there, just look at Iphone. But i think Microsoft is afraid of all the anti-thrust lawsuits they would get. Wich means we won't get the perfect combo of a smartphone and a protable gaming system. And they say those lawsuits are for the good of the consumer....

Look at the state of the PSP software library (though it's a bit better this year), I think a Microsoft handheld would fare even worse. It would need to do more than gaming for me and have 3 killer apps that I want before I buy it.

It will be called: Zune 360, or Xbox Zune, or Zunebox, or something like that, it will compete with Ninty and Sony's handhelds as well as with the iPhone/iPod Touch...

They dont need to.  Zune HD is using Nvidias Tegra chip for graphics solution. Which everyone knows is the best graphics chip for on the move devices. When they demoed it, people were blown away.

The problem is not the GPU, it's the controls... Unless they launch a controls add-on, or a Zunebox with integrated controls...

I agree there. Although DS type games would be fine. But games like FPS's and racers would be better with an attachment. Afterall it's believed that Halo 1 and 2 would work fine and just the same visuals as there originals according to Nvidia and the Tegra chip designers.

PS3 a failure confirmed

You can't really call the PSP and especially the Go a success.

the won't anytime soon. the market is saturated already.

I love how people say this. How is the portable market more 'saturated' then the console market? When the Xbox was released the Dreamcast, Gamecube, PS2, and the PC were out. What would the Xbox Pocket be up against? DS, PSP, iPhone(Not even bought for games)? Please tell me how the portable market is 'saturated'