Could Sony Make a Comeback in the Handheld Market?

When discussing the differing approaches of Sony and Microsoft to the current generation of console hardware, it's often suggested that Microsoft views Xbox as a software and services platform, while Sony sees consoles as traditional, self-contained platforms. However, this perspective overlooks the fact that Sony views each PlayStation as a central component in a network of interconnected products, including software, services, and hardware. This concept is deeply rooted in Sony's history and corporate culture, influencing its decision-making and values. Successful companies evolve over time, but their original DNA persists, shaping their strategies. For instance, Nintendo, founded as a toy company, views its consoles as advanced toys, allowing it to take risks on hardware launches. Microsoft, with its software and operating systems background, approaches the gaming market by focusing on building a competitive advantage through operating systems. Sony, as a consumer hardware company, sees hardware as the core of an ecosystem, contrasting with Microsoft's software-centric approach. The company has explored various ways to realize this vision, including the PSX, a device that combined a PS2 with a DVR, and the PlayStation TV, which allowed for game and media streaming. The PS3, initially announced with features like a built-in network switch, was envisioned as a home media server. Sony's handheld consoles, the PSP and Vita, were also designed to fit into this ecosystem, with the PSP being a portable media device and the Vita featuring non-gaming media and communications capabilities. Although these ambitions have not entirely come to fruition, the company's vision still informs its decisions. Sometimes, Sony's risks have paid off, such as the PS2's success as a DVD player or the PSP's popularity in Asia and Europe. The idea of Sony re-entering the handheld market has captured attention, with reports of a potential new device. However, the commercial case for such a move is challenging, given the company's past experiences and the current competitive landscape. The market for handhelds is now dominated by the Nintendo Switch, and smartphones have also eaten into the sector. The success of games like Genshin Impact on smartphones raises questions about the need for a dedicated gaming handheld. Launching a high-end handheld would require significant improvements over existing devices, including better controls and performance. The reported idea of a Sony handheld that streams games from a PS5 seems unlikely to succeed, as it would not offer anything new or compelling compared to existing options. While there may be enthusiasm within Sony for a handheld comeback, the current market conditions and past failures make it a difficult and unlikely prospect. Nevertheless, if Sony is willing to learn from its mistakes and commit to a new handheld platform, it might be possible for the company to surprise the market and challenge Nintendo's dominance.