Sony doesn't really have the lineup for it. The Switch is getting the third party support it is, which isn't amazing by any stretch, because the system is selling well. The system is selling well largely because of Nintendo's first party lineup.
I'm not arguing Sony doesn't have good first party games, but they don't have stuff on the level of Mario Kart 8, Pokemon, or Animal Crossing. Not enough that would really be able to sustain a platform.
And even if we theoretically say that they can get a hybrid SKU of the PS5 that will have all of the same games (with a drop in quality to PS4ish levels), then how much is that helping them? How many people are going to buy this that would not have bought a PS5 instead? Maybe some will buy it as a supplemental system to play their PS5 games on the go, but unless Sony is making a profit on the hardware itself, what's the point for them?
It's definitely technologically possible, but I don't see a market for it.
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