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The fact of the matter is Nintendo simply won't let Sony win in the portable sector, especially now that all their chips are in on the Switch.

What's the point if you're just going to get spanked by Nintendo. There's only a smaller market for portable gaming devices left, and even for Nintendo, Nintendo now has to go upmarket (higher end) with Switch to be able to co-exist with smartphones/tablets.

Where would Sony even fit in? Switch is not a low-end device/kids toy.