I think MS making a portable would be a disastrous waste of money and development time. They should focus on the 360. Look at the PSP - it's not doing so well compared to the DS. I have a PSP. I don't play it that much anymore and don't see myself buying any new games for it now that I have a 360. It does, however, have a bunch of great games available for it @ $20 or less. Why would MS want to go up against DS and PSP when 360 and PS3 are still competing?
Instead of spending time and money developing a portable gaming system, they should focus on winning the system war they are in during this economic crisis. PS3 is coming out with a lot of good exclusive games. MS would be better off spending that development time on new games.
PS - cut the price on Xbox live and the wireless adapter for the 360, damnit. take those into account and the 360 is not even cheaper than the PS3.
And Sony must be some kind of stupid to not put 2 analog sticks on that smaller UMD-less PSP that's coming out (PSP Go, I think)
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