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StuOhQ said:
A PSP follow-up would actually be good for Nintendo. It would mean more AAA titles that could be ported to Switch as optimizations between two handhelds would be less of a gap than from current home consoles.

The opposite of this is true. The Switch is already catching steam as far as portable titles go, and they could be ported to the PSP3, which is yet to prove itself - after all, much less money is needed to make a port than develop something completely new.