I think it would be really risky for Sony to start directly combating Nintendo again in the portable space. They did that once and they did not meet expectations. On the other hand, they have been battling Microsoft heavily the last few generations and have been winning by more and more. I think they should continue to fight for that crown as there will always be a market for the top of the line graphic power. It also gives them a good head start on the VR market which they are also making hefty gains.
However, I will say that this entire thread reads like one of those pre-era threads just prior to some big announcement that proves everyone wrong. I wouldn't completely write off any decision. Sony has always presented knee-jerk reactions to Nintendo's successes in the past. If they wanted to ever combat Nintendo in the portable space head on, this is the time to enter, however I think it would wiser to do what they are doing with their market and allow natural progression to lead them to a portable space later on. Perhaps through a standalone headgear that unifies the VR market in ways no other company could another generation or two down the line. As successful as Sony is though, they are just as guilty as other companies of not capitalizing on opportunities and preemptively making ill fated decisions, so who knows. Sure wish I could predict the future. ;)
