Sony better be readying a PS5 Portable if they want the have any sway in Japan going forward. Dedicated Home Consoles are just not clicking with the Japanese consumers.
A Handheld, built on the PS5 architecture, with reductions to target 1080p would already be possible, but not ideal. Going to 5nm will give them the energy savings they need to make such a machine viable.
I’ll never stop holding out hope for a proper 3G Vita successor. I still believe a PS Phone in the proper Handheld Form Factor, with a unified OS and Library could set new records for PS hardware in Japan, and become a very successful expand of the PlayStation brand.
A ps phone doesn't work, The game must be the first. Sony have to assume a portable game device or go a hybrid route. The two choices diminished the stationary Sony premise: a powerful PC casual box. The handheld exclusive diverges sony efforts to the main force. And the second needs new design around the hybrid route and it's a different path, PS5 hybrid is not gonna work, sony need deviation of the current course.
The way sony regain JP market is a disruptive route.