This is clever because when the iPad Mini was launched, Microsoft was asked if they would be producing a 7-inch version of Windows 8 however the answer was no. This means that they still could be producing this small console because technically it would not run Windows 8.
PlayStation released the Vita late last year and I wouldn't call it a failure however I wouldn't go so far to call it a success. It had a 5-inch touch screen on the front and it was touch sensitive on the back which was pretty cool however apparently it didn't sell even half the number of the Nintendo 3DS.
The Nintendo DS originally came out in 2004 and since then there has been loads of versions including the Lite, DSI, DSI Exel and the 3DSI. In my opinion the Nintendo DS is the single handhelds games console which revolutionised the making of handheld consoles. It was the first games console with a touch screen!
What I would like to see:
The Xbox controller is easy to hold and doesn't hurt your hands after long periods of time rapidly pressing button on the remote so the handheld console needs to be similar in this aspect.
The Nintendo DS was massively successful because it was really simple to use and could be operated by anyone even if they were a really young age. I hope the XBox device is really easy to use and I hope that they don't put too many options on the 'Start' screen.
I really hope that Xbox does not feature live tiles or it will be the 3rd Microsoft service to start using them. There is a possibility that people don't like a load of rectangles on their screen so I hope the makers of this new hand-held console decide to go down a different route.