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They picked the best possible time, but some earlier years were possible.
PSP launched in Japan in late 2004 and was closer to a PS2 in specs than most would've expected. Nintendo might've been able to release a Switch around 2006 that was similar specs to Wii in docked mode and around a GameCube or slightly weaker in handheld (to conserve battery).
2012-2013 might've worked out as well. Just don't make the 3DS or Wii U and release a hybrid platform around PS3/360 specs (in docked at least).
I don't think mobile batteries and chipsets were really there before 2004 for a hybrid to be worth it. A hybrid shouldn't just be handheld-like games on a TV, but a home console experience too.
PSP could've been a hybrid, and it IRL it nearly was. It never had a dock and component cables were sold separately. But still, if you bought them, you could hook it up to a TV.
If PSP was a hybrid in real-life with similar specs (maybe boosting up slightly past PS2 in docked mode) it could've decreased Sony's reliance on PS2 while PS3 struggled out of the gate. There's no way I could see the PS3 itself as hybrid. A successor to PS2 with barely better specs would've probably been an even crazier decision than Sony already went with in the many expensive PS3 decisions they made.



Lifetime Sales Predictions 

Switch: 161 million (was 73 million, then 96 million, then 113 million, then 125 million, then 144 million, then 151 million, then 156 million)

PS5: 122 million (was 105 million, then 115 million) Xbox Series X/S: 38 million (was 60 million, then 67 million, then 57 million. then 48 million. then 40 million)

Switch 2: 120 million (was 116 million)

PS4: 120 mil (was 100 then 130 million, then 122 million) Xbox One: 51 mil (was 50 then 55 mil)

3DS: 75.5 mil (was 73, then 77 million)

"Let go your earthly tether, enter the void, empty and become wind." - Guru Laghima