What Microsoft has been saying about Xbox lately strongly implies that this is a Windows handheld designed to solve software and user experience problems with using current Windows handhelds. And signs are pointing toward the next Xbox console coming sooner than the next PlayStation and essentially being a PC running a console version of Windows. Some speculation on my part, but I’m not the only one coming to those conclusions.
That doesn’t really happen though what happens is-
MS buys one of the biggest older players, then changes whatever direction they were going in, to their ‘new hotness’
MS kills the company they bought after being way too late to market, and everyone has already chosen the cool product