In Sony's defense. Nintendo has proven that these plug and play retro systems make a lot of money and Sony would be fools to leave that kind of money on the table, especially with how much nostalgia is behind the PS1. While the Vita at best barely made them any money.
That was part of my point. PS got into handhelds, motion controls, etc, because Nin proved it could be done and in a way that made lot's of money. The odds that PS doesn't try a hybrid like the Switch are unlikely. The main reason I could see PS truly leaving that market sector entirely, is if they focus solely on PSVR from now on instead, which they just might do since they have that market to themselves and probably will continue to in the foreseeable future. Mind you, a PS hybrid should fix the Switch mobility cross play issue if they felt they needed to directly address that.
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