You know... You're pretty much describing the Vita, right?
"just imagine a handheld that can play games looking much better then the PSP, Can plug into your TV, Will be able to play all Sony's Console and Handheld games and will have a ton of Japan support."
That describes what Sony was pitching with the Vita when it was lauched. We all know how that fared.
No i didnt and also no The Vita didnt play all PS4 games....
Also Nintendo has a great record in the Handheld market Sony does not.
No, it didn't play all PS4 games. It came out well before the PS4. It was marketed as a device that would be able to play PS3 games, however. They designed it to be easier to port PS3 games to it. Did that work out well? Well no. They tried to get all of the major franchises to it, but only ended up getting a handful of major third party games on board (Borderlands, FIFA and Assassin's Creed comes to mind) But many major Sony home console franchises appeared on the Vita like Uncharted, God of War, LittleBigPlanet, Killzone, etc. That was the objective, it just missed the mark. Besides, whose to say Nintendo is going to do a better job of it? Look how badly the Wii U missed the mark.
As for Sony not having a great record in the handheld market, they still have the top two selling non-Nintendo handhelds of all time. The only company to ever come as close to Nintendo was Sony. So while I would never say they have had a "good" record in the handheld market, I would say they have a solid record. Both the PSP and Vita were solid platforms and took the fight to Nintendo in a way that no other company ever had.