Making a portable gaming system would be a waste of time and resources for Microsoft. Nintendo pretty much owns that entire market and their closest competitior in that regard is Sony, and the PSP sold a little less than 2/3 of what the Nintendo DS sold. Basically what I'm saying is that Microsoft would be setting themselves up for a real whooping if they did make one.
The thread title should read "Let's Talk Zune." Kidding... SaintBlaze made very good points, and I agree with what he said. But some kind of portable or semi-portable version of the Xbox 360 that could play Arcade games (and maybe even downloadable Xbox 360 games, or something of the sort), had deep compatibility with the Xbox 360 itself, and that had better media capabilities would be pretty cool I guess.
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