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They gave up support for it after the first year. No more Uncharted, Kill Zone No TLOU etc. All the big western support dried up pretty quickly. Western games usually are important for a system to sell in the west. Wii U without support from EA, Activision, Ubisoft etc. are prime examples.

I don't think they should make another handheld because the nature of hardware is constantly shifting. Look at PS4. It went from 'Supercharged PC' to out of date within the span of a year. And since Sony's hardware focus is always on power, then it would defeat the purpose. Plus Sony has enough trouble making first party games for PS4, much less trying to support a handheld too.