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I think nintendo has made some small mistakes with the Switch which should allow a competitor some decent acces. Price and overconfigurability are the biggest ones.

What sony needs to do is, like nintendo, focus on a in home gaming experience that can be taken portable, inside the home mainly but also on the road.

A successful type console IMHO would be something like a PSVita2 (64bit ARM SOC, maybe bigLittle quad/quad, whatever). USB-c, cartridges, memstick (SD pls!!), bluetooth.

Upgrade option would be to purchase a USB-c switch style dock cradle with dualshock4 for TV play (dock charges vita2 and multiple controllers). Also should be able to plug in a hard drive for storing your whole game library, some nice tool for keeping your fave mobile ones local on the psvita2.  1080p would be okay for this.

Controls of the psvita2/dualshock 4 should overlap for sanity (back touchscreen? nah).

One possible business model:

Someone can get into the ecosystem by purchasing the psvita2 bare.
TV "dock" with dualshock4 for nominal upgrade price.
On the go multiplayer: NES style bluetooth gumstick controllers (games need to specifically support these).

It would be cool if something like this happened. But who knows if sony would really do this?

Having had a psp for a while now...I do like the switch's ability to change out controls, mostly for when they wear out and finally break!