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The industry on a whole can only support so many development environments. There is a limit to resources, and that includes Sony's own in-house capacity to support another platform.

Nintendo's mobile and home strategy all reside under one roof and they have a 10 million unit head start.

Sony would be smarter to sit this one out, because getting thrashed by Nintendo and eating billions in losses would hurt PS4 and PS5 and drag the entire organization down.