too 'good' to be true. sounds like a fantasy wishfull dream of some fans.
if this is true,
then it mean they didnt learn anything arent they?
same strategy, except this time Series S end up as Steamdeck and they expect things would magically working differently in wonderfull way, again.
on paper this is a very good plan(just like Series S). with XCloud and Gamepass for example would fit nicely over the handheld. however there is lot of issue later that could crawl back to them. like if the handheld gonna tied to the home console version which mean it is Series S all over again. if they throw same excuse like it has same CPU or they prepared tools for magical flip switch port process, then it mean they didnt learn a things from their current failure and failed to see the real picture.
worst case they might end up competing directly with Nintendo. two way against Sony before with Series S/X might end up 3 way against Nintendo now in the mix with their handheld hardware. what gonna make it harder is that both Sony and Nintendo might not even competing among each other but Microsoft are the only one facing them both at once alone simultaneusly. they failed for decade against Sony and now they trying their luck against Nintendo? who is basically untouchable and already has track record of destroyed even Sony in handheld market before. even Sony end up give up.
and this didnt count the growing PC handheld market that could end up like a second PC market. its like competing against PC spaces, in handheld mode. releasing their game on PC before already hurt Xbox consoles. imagine if it gonna be a repeat again but in a handheld market this time.
it is not impossible. but if they really gonna do this, then they need to tread their plan carefully. they already lose alot and cant risk to keep losing again especially considering the ycould loss much harder this time.