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I don't think it would be a commercial success, portable machines seem to be the thing that works for Nintendo.

It would probably not work just as if Nintendo tried to go all powerful on hardware to compete with the Pro and the X. It's just not their thing.

As for what Sony said that they need to keep an eye on Nintendo it's just a strategic statement, whenever a competitor rises in success it's common sense to keep an eye on what they do but it does not mean that Sony wants to emulate what Nintendo does, at least I don't think so.