Rare and the DS... lol

Hmmm, well a handheld Xbox (the current console in handheld form) could be cool. I doubt that would be easy to do though, at least right now, conssidering that an Xbox is easily 5 times more powerful than a PSP. A portable Microsoft gaming system is unlikely, they said they had no interest in the handheld wars. It is too early for them to do so anyways, they would do better to wait for the next gen of handhelds.

Then it's perfect. Say they aren't interested. Gain valuable experience in designing hand held games for their competitors, and then out of the blue a few years down the road comes a handheld by Microsoft. A very possible what if.

That's pretty much what I was thinking about. There were no handheld "wars" prior to the PSP, all competitors were simply crushed by Nintendo's Gameboy. They could learn alot about what not to do from Sony, while gaining profit and experience by developing for Nintendo's DS.