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Sony just needs to stay out. There's a difference between competition and unnecessarily over flooding the market with something that's not needed. 

Nintendo is allowing traditional gaming to still have a foothold in a portable market that's been eaten alive by smartphones/tablets.

It's in Sony's long term interests that kids get hooked on dedicated gaming early on too. Nintendo's job is hard enough as is.

Stay the fuck out, plz. You're not going to beat Nintendo, all you're going to do in unnecessarily divide developers for no good reason. Go focus on PS5 and VR.