What's your take on that rumor? Does it have any chance of popping up? What would be the ramnifications of it?

If its real itll be a tablet device, not a dedicated system. Imagine that game phone Sony made years back

All i know is that it would be one of Sonys worst decisions if true, they should just focus on what they do best their home console.  

It depends on what the PSVITA really was for Sony, profit wise. We think about it as a huge failure, and it is, popularity wise.
But if in the end of the day Sony was not hurt by it, they can always fix the problems and try again.
Specially now that the Switch is taking the world by storm, they could easily ride the same wave in a lesser way.
But Sony knows they have not a prayer of beating Nintendo on mobile, because of Pokemon, Mario, Zelda...
That aside, if the PSVITA turned a little bit of profit in the end of the day, I see it happening.
And I am probably interested, specially if it puts a Switch and also works on the TV.

Sony just needs to stay out. There's a difference between competition and unnecessarily over flooding the market with something that's not needed. 

Nintendo is allowing traditional gaming to still have a foothold in a portable market that's been eaten alive by smartphones/tablets.

It's in Sony's long term interests that kids get hooked on dedicated gaming early on too. Nintendo's job is hard enough as is.

Stay the fuck out, plz. You're not going to beat Nintendo, all you're going to do in unnecessarily divide developers for no good reason. Go focus on PS5 and VR.

I think Sony would be insane not to release a Handheld/Phone built around PS4 tech, with full access to PS4 software and service. It has to happen at some point if they want to continue to grow the PlayStation division, and continue to please consumers and more importantly share holders. PlayStation is their only growth business right now, and if they want to continue this upward trend in profits, they have to widen the platform. Whether they can make that happen right now is another question.

Personally I don't think it will happen this year. I think it is going to have to wait for 7nm FinFET. Unless all PS4 games have the ability to scale back assets, resolution, ect., there is just no way they can build something the size of Vita or Switch that can run these games. If they did, build something small enough, I think current games would have to be patched to play on it, meaning less support, and a bad image in gamers minds.

In my opinion, it is smarter to wait until they can deliver the full PS4 library on a mobile device. I think a Wifi only dedicated Handheld, and a Phone model would do quite well with the backing of the entire PS4 catalog and services. They should be able to do this at a very low R&D cost, as it should use the same chipset as the PS4 Super Slim, and run the same OS. I think by making it just another device in the PS4 ecosystem they could have a very successful mobile market even if they only reach the 15 million Vita users. Although, I think a PS4 Phone would be the most successful mobile device Sony has ever launch, and sell much better than Vita or PSP.

I highly doubt that it's real, it just doesn't seem like it'd do well at all, and I'm not sure if Sony's really willing to bleed the money.

Can't see it happening, and can't see it succeeding if it does.

100%

It won't happen for a long, long, long time. 

Even at 7nm, a PS4 chip would likely consume about 25-30 watts, that's not feasible in a mobile device. 7nm production for a chip as complex as a PS4 is years away too. 

The PS4 needed to be designed from day 1 as a mobile centric device for that idea to work. It's not. Switch is. 

Nintendo will be able to release a Switch in 3 years or so with PS4-tier graphics, that will be good enough.