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My opinion on this matter , well on the playstation side of things,

entering the handheld market seams like it did hurt more then good
competing with Nintendo who dominated the market . for some 20+ years is alot different then when Sony entered at 13 years in a console race which was already split in two thanks to Sega
Nintendo practically owns the handheld market .
so with that said . there is reason I believe entering the handheld market for Sony was not a good move.

sure PsP sold well enough. but the game gear also had its fair share of sales.
and these 2 took their respective company's eyes off the main ball enough so the competitor can get a run up
it seams that is exactly how it started . . for both Sony and Sega -Sega whom had a popular genesis -as soon as Game gear hit sega became cocky. started making 1 mistake after the next.

Sony came up with better results then Sega so far but that don't mean it took nothing away from them because they to became cocky and thought charging 600 dollars for a PS3 was such a good idea
did not work out to well and this is the results