Rumors suggest Sony is developing a new handheld console to challenge the Nintendo Switch and expand its reach in the portable gaming market. This follows the lukewarm reception of the PlayStation Portal, a device that streams PS5 games. A new console capable of natively playing PS5 titles could significantly boost Sony's appeal and address the recent price increase of the PS5.

This isn't Sony's first foray into handheld gaming; the PSP and PS Vita, while popular, couldn't dethrone Nintendo. However, with mobile gaming booming and both Nintendo and Microsoft actively competing in the handheld space, Sony aims to re-enter the market with a more competitive offering. The increased popularity of mobile gaming, due to its convenience and accessibility, highlights the potential of a dedicated handheld console capable of playing more demanding games than smartphones can handle. Nintendo's continued success with the Switch, and anticipated future releases, further underscores the market opportunity Sony is pursuing. While Sony remains officially silent on these reports, the potential for a new handheld console is generating considerable buzz.