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curl-6 said:

To work as a portable they would have to sacrifice power, and with so much of their userbase accustomed to getting competitive graphics on Playstation, I don't think that's a move most of their fans would accept. They'd be effectively losing a big chunk of their global audience just to improve sales in one country, which just doesn't make sense.

I'm sure a better supported (with PS4 slim specs) handheld can sell at least 15-20 million outside Japan, they will then need to target at least another 15 million in Japan. A 30-40 million seller handheld doesn't look bad at all to me. If people are buying and playing The Witcher 3 just fine on Switch I think a PS4 portable can sells ok 

The question is whether Sony bother or not to have another PSVita that is successful domestically and not that successful overseas.

JP-focused games aren't exactly jaw-dropping in graphical department, JP fans (target of this possible portable) won't complain to get a downgraded portable version of future PS5 Monster Hunter, Dragon Quest, Persona, Final Fantasy or Nier. In reality I don't even think those games really need a huge downgrade, just a bit lower resolution and a 30 FPS and they must run smoothly (the exception is the new FF that really will try to push strong in graphical side)