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If the hardware is identical to that of the PS4, meaning you could play you're entire digital PS4 library on it without any problems, yes there will be a market for it. It could also lengthen PS4 software support, and would mean much better developer support because the PS4 will have a very large install base.

With PS3's hardware including the Cell cpu, it was simply impossible to scale this hardware down to portable level. With PS4 it should be possible in a few years

But like i said it has to be identical to PS4(without disc drive), that is absolutely vital.