With the Asus ROG Ally and Lenovo legion Go competing with the Steam Deck, could Microsoft makes an Xbox Surface?

Futurdreamz

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Steam Deck is proving that the Handheld formfactor is popular enough for others to try, so I was wondering what would it look like if Microsoft were to throw their hat in the ring?

I guess my questions is, Is there enough overlap between Xbox OS and Windows OS for Microsoft to make a device that can play all Xbox games, Windows Store games, Steam games, and games from any source? If the hardware is compatible, could Microsoft make a hardware-specific setup to run everything, either a wrapper app to handle Xbox games - or possibly a Hypervisor setup that has Windows OS and Xbox games run side-by-side, so when you launch an Xbox game Windows gets deprioritized or suspended?

Would it be better to have permanent controls like the steam deck or asus ally, or detachable like the lenovo go and Switch? Would it be good to have support for an eGPU dock, so you can have higher performance when gaming at home?
 

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