Combine these 3 things. Fuck a dedicated handheld.

Xperia Z1 = $550 - $600 without contract + a quality shell $50 - $100 = total $600 - $700

http://store.sony.com/xperia-z1-zid27-XZ1C6902//cat-27-catid-Android-Smartphone

http://www.amazon.com/s/ref=nb_sb_noss_1?url=search-alias%3Daps&field-keywords=xperia%20z1

And people say, the PSVita is too expensive!

I think they'd be better off going software only for their next handhelds. Use the Playstation App to not only connect your PSN ID but to download dedicated mobile Playstation titles with Trophies and all the features you expect from PSN. Kind of like a mobile Steam but specifically with Playstation connection in mind.

Also, have a compact controller peripheral that automatically gets bundled with all high-end Xperia phones and tablets and can clip/slide on with ease. All Playstation mobile titles should support this peripheral. There should also be crossover between PS3/PS4 titles.

This exactly.

Easy: don't make one.

Ya, it's called a smartphone

They don't need to beat nintendo to be profitable. Or Nintendo would have stopped doing homeconsoles after N64 and GC.

that will never work man they will be DuUum3d before they launch it!


OT: this is assuming Sony is still around for the next gen handheld they should really just not do one at all

Make it fully BC, including all vita games and digital PS3 games, and either make their memory card prices realistic or let the HW accept microSD cards.
Add 2 extra buttons next to the shoulder buttons which would be the equivalent of the trigger buttons on the dualshock.
The wifi should be energy efficient and highly optimised to allow long remote play sessions.

Remove front facing camera and rear touch pad to save costs and make the HW as powerful as possible keeping it mind it should not launch above £169.

Advertise PS+ for the system which include 2 of the best digital vita and PS3 games available throughout the year.

Finally, continuously launch comparison videos comparing a gamer frustrated by microtransactions on a crappy mobile phone games with the proper games on their new system. - Im surprised they havent already done this. A lot of people need to know how far the level of media they are spending time on is from the best in the industry.

Support it with appealing software. Prioritise Japan first. Dispel the illusion that people who only buy COD and Madden are gonna be interested in a dedicated handheld system.