It doesn't seem likely after their corporate VP for retail sales and marketing (Peter Moore) has said this:
What are everyone's thoughts on this?
Asked if Microsoft was planning its own entry into handheld gaming, following the revelation of the PlayStation Portable at E3, Moore told us: 'We're not in that business and there are no plans to be in that business right now.'
Explaining this stance, he added: 'If I believe, which I do, in the social aspects of gaming, at the furthest end of the gaming spectrum against that is handheld gaming, because that's a very solitary, time-killing activity.
'It's not something you share - we believe that the future is the social element of gaming, and that's going to be done through a console, not through a handheld gaming device.'
What are everyone's thoughts on this?