> So what's a company to do? Easy. Split into two subsidiaries, and have them
> develop one machine each. If the bet pays off, both with be successful. If only
> one is successful, it may recoup the losses from the other.
Nice concept, however that isn't the case here.
In fact, GPH and GP are now totally seperate companies. They split up due to differences in philosophy. Basically GP still wants to become the Korean Nintendo, while GPH just wants to cater to the emu/homebrew crowd (afterall, that's who ended up actually buying GP32's). IMO, GP has big dreams and probably won't succeed, while GPH is very practical and will carve out a niche for themselves.
So if XGP fails, GP has nothing to fall back on.
I wrote a GP2X FAQ if anyone wants more info.