Sony is developing a new portable gaming device that can run PlayStation 5 (PS5) games natively, according to Bloomberg. The device is reportedly in early development and could take years to launch. Sony has not confirmed the project and may ultimately choose to cancel it, insiders revealed.
The move would signal Sony’s return to the portable gaming space after the discontinuation of the PlayStation Vita in 2019 and represent a potential game-changer in the increasingly competitive handheld market dominated by Nintendo and Valve. However, the device apparently remains years away from release, and Sony has yet to commit to its launch.
Sony’s Portable Gaming Evolution
Sony has a complex history with handheld gaming. The PlayStation Portable (PSP), launched in 2004, offered console-quality gaming on the go using the proprietary Universal Media Disc (UMD) format.
Its successor, the PlayStation Vita, introduced an OLED display and touch-based controls, innovations ahead of their time. However, despite critical acclaim, the Vita struggled against the Nintendo 3DS and the rapid rise of mobile gaming, leading to its quiet discontinuation.
In 2023, Sony revisited the handheld concept with the PlayStation Portal, a streaming device for PS5 games. Unlike its predecessors, the Portal relied on Wi-Fi connectivity and lacked standalone functionality, limiting its appeal. The planned new handheld seemingly seeks to address those limitations by enabling native gameplay, a feature that could redefine Sony’s approach to portable gaming.
Handheld Gaming in 2024: A Market in Flux
Right now, the handheld gaming market is undergoing a resurgence, fueled by diverse offerings catering to varied gaming preferences. Nintendo continues to dominate the space with the Switch family, including the OLED and Lite models, which have sold over 130 million units globally. A next-generation Switch, expected in 2024, aims to build on this success with upgraded hardware and enhanced hybrid features.
Valve’s Steam Deck has carved out a niche for PC gamers, offering compatibility with Steam’s extensive library and support for third-party applications like emulators. Asus’s ROG Ally has pushed the boundaries of portable PC gaming, delivering high-performance hardware for enthusiasts.
Meanwhile, Microsoft has acknowledged its intention to enter the handheld market, with Xbox head Phil Spencer confirming the development of a portable Xbox prototype, though it remains “years away”.
Sony’s new device must navigate this competitive landscape, differentiating itself through unique features and seamless integration with the PlayStation ecosystem.
The Native Gaming Advantage: Why It Matters
One of the defining features of Sony’s upcoming handheld will reportedly be its focus on native gameplay. Unlike cloud-based solutions that require stable internet connections, native gaming relies on local hardware to run games directly. This approach ensures consistent performance and removes dependency on connectivity, making it particularly appealing in regions with unreliable internet infrastructure.
Native gameplay aligns with consumer preferences for portability without compromise, positioning Sony to challenge devices like Valve’s Steam Deck, which blends local and cloud-based functionalities. If executed effectively, this feature could set Sony apart in a crowded market where performance and convenience are paramount.
Sony’s Broader Strategy: Balancing Challenges and Opportunities
Sony’s pursuit of a new handheld console comes during a transitional phase for its gaming division. Sales of the PlayStation 5 have slowed as the console enters the second half of its lifecycle, despite the recent introduction of the PS5 Pro, a mid-generation upgrade aimed at sustaining consumer interest. Analysts anticipate a PlayStation 6 release in late 2026 to 2027, following Sony’s historical timeline for console generations.
Internally, Sony faces operational challenges, including layoffs affecting 900 employees—roughly 8% of its gaming workforce—and the closure of several studios, such as Firewalk and PlayStation London. Bungie, a Sony subsidiary, has also been impacted, with significant cuts stemming from Destiny 2’s underperformance. These developments highlight the financial and structural pressures Sony must navigate as it seeks to diversify its offerings.
Sony’s $700 million bid for Kadokawa Corporation, the parent company of FromSoftware, reflects its strategic focus on securing exclusive content to bolster the PlayStation ecosystem. With Elden Ring and Dark Souls among FromSoftware’s acclaimed titles, such an acquisition could enhance Sony’s competitive position against rivals like Microsoft, which continues to expand its portfolio through acquisitions.
Cloud Gaming: Complement or Competition?
While Sony’s handheld emphasizes native gaming, the broader industry is being shaped by advancements in cloud gaming. Services like Xbox Cloud Gaming and NVIDIA GeForce NOW allow players to stream high-quality games directly to devices with minimal hardware requirements.
The Steam Deck and Logitech G Cloud exemplify this trend, offering hybrid functionalities that combine native and cloud-based gaming. The rollout of 5G networks has further enhanced the viability of cloud gaming, reducing latency and enabling seamless gameplay on the go. Sony’s device could capitalize on this trend by incorporating optional cloud features, broadening its appeal to different segments of gamers.
High Stakes and the Path Forward
The success of Sony’s rumored new handheld will depend on its ability to address key market demands—balancing performance, affordability, and integration with the PlayStation ecosystem. Competing against established players like Nintendo and emerging innovations from Valve, Asus, and Microsoft will require a compelling value proposition.
If Sony delivers on its promise of native PS5 gaming in a portable format, the device could redefine what players expect from handheld consoles, opening new opportunities in an increasingly competitive space.
