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It would be harder to compete against Nintendo now. At least during the DS/3DS days, Nintendo's dev resources were largely split and Nintendo's biggest games in many cases were on the console side only.

Now Sony would have to deal with a Nintendo portable that has all their big games on it, in the past games like Splatoon and Mario Odyessy and even third party content like NBA 2K would not be on the 3DS/DS.