Once upon a time, people thought Microsoft was going to enter the handheld console market. It hasn't! Maybe, it will one day, but for the time being, the company is sitting on the sidelines. Any regrets? Says Microsoft's Shane Kim:

I'm very happy we didn't get into it, because launching a handheld platform is like launching another Xbox 360. You have to be fully committed, as an organisation, from a resource standpoint, to doing that. Frankly we've got a lot on our plate with Xbox 360 and Xbox Live. We don't have any experience in that space. Our content assets don't naturally lend themselves to driving success in that particular market.

So we're happy to let Sony and Nintendo slog it out. I do think mobile is probably the more important platform in the future, and the number of Windows mobile devices and hardware that's capable of running Windows mobile in the future is really a compelling opportunity, and one where we don't have to worry about launching a new hardware platform too.