For the fighting game nerds interested in this sort of thing, here's Harada talking in detail about his amusing feud with Itagaki, and the Tekken vs Dead or Alive rivalry:

We're entering into some new Horizons now.

Calling it now: Playstation 6 will launch in 2 forms: A moderately-powerful standard PS6, and a much weaker handheld version.

I had little doubt that Sony will launch a handheld SKU in the not distant future. When the SteamDeck launched, I surmised that it could be in the form of a mid-gen PS5 SKU. But with the terrible pricing trajectory of this generation and the rumors about a Sony handheld being early in development, it's safe to say that it's not coming this generation. The current generation showed that chasing high specs may not be worth it anymore,

Microsoft will beat Sony to the punch with an optional Xbox (or Xbox-branded PC) handheld, because it can potentially run Series S apps (or PC apps) natively without any extra work form developers. But I think it'll be too expensive and production limited.

I don't see the point of Sony doing it.
Won't play the big games as well as the home console and will have no exclusives on it.

If Microsoft can make a Xbox portable with Windows support so getting Steam on it, then it would be very interesting.

Surely the concept is that they would play both?

I think it makes sense. It explains why PS5 Pro is even a think to begin with in regards to PSSR.

If PSSR can allow games to run at much lower resolutions to the point where the weaker hardware would still play all the native console games, then that would be good. 

Yeah, I can see it. The problem comes to what would Sony prioritize in production for the first wave, the base system or the handheld? The Portal production decisions were great so I expect more good production decisions in the future.

Also I wouldn't be too worried about the extra work for developers, if Sony keeps the same operative system (and they should if the idea is for it to run ps4/ps5 games) small to middle size devs shouldn't have any problem optimizing. Big developers could have problems just like how they are having problems with the series S right now. I have no idea how Sony would solve those but maybe cloud gaming is a work around. In the Portal subreddit most experiences with cloud gaming are positive.

The fact that they wouldn't need to make exclusives for the device other than their own exclusives designed to run in the base console is actually a reason in favor of making a handheld. The main characteristics would be being cheaper than the ps6 (compromising power, just like the steamdeck), your exclusives and also offering the portable experience. Since the cloud gaming update for the Portal people have bought it as a "$200 PS5" option because you don't need a PS5 anymore to make a Portal work.

Also, I don't know a lot about pc handhelds options but the Asus rog has steam, epic and gamepass. You can also get gamepass on the steamdeck if you follow a tutorial. MS hardware is high quality but they will need a lot more than quality and a handheld with Windows to sell.

It's a bold prediction to be sure (that the handheld is coming at launch). But I think it's the right thing to do provided it's possible. The lowest common denominator will gradually drop regardless of Sony's hardware choices. Maybe they can find a balance where most games are required to be made on the handheld, and more demanding "impossible" games are allowed to only be made for the home console.

If they do take this path, the handheld won't necessarily be cheaper, and Sony will prioritize the home console for sure. The handheld will just be there for the minority that want it.

I really hope the Portal successor follows the Pro console when it comes to different models.

For the initial launch we get a Portal at a friendly price for the mass audience. Perhaps $299 with the ability to stream PS5/PS6 games via the cloud and its able to play PS+ back catalog natively. It launches a year or two after the PS6. Then we get the "Portal Pro" launching alongside the PS6 Pro, and it can play PS6 games natively, meant for the enthusiast/hardcore audience. 

I think Sony has already beat Microsoft to the punch when it comes to handheld devices lol. The Portal should be over 1M+ units sold in NA based on Mat's latest update. Its attach rate has grown YoY and the device itself is gradually becoming more robust with updates. I feel that if Sony plays their cards right, they can recapture some of that handheld market they lost.

The Portal isn't much more than just a screen glued to a controller. It's not a proper handheld and not intended as one (cloud gaming isn't enough). I'd keep it simple and name it "PS6 Portable" or "Playstation Portable". Some old games get rebooted, so the PSP might too.

Now that I think of it, the handheld may end up being a PS5 Portable, with an even longer crossgen period than last time, and be replaced by PS6 Portable a generation later. I think handhelds are inevitable, but they're also destined to be replaced by mobile phones. At some point in time AAA gaming is going to merge with mobile gaming, and consoles will downgrade to enthusiast devices.

I don't know if handhelds (Switch included) will ever be the primary platform for AA/AAA gaming, but they will take a large piece of the pie before mobile phones take over.

Age of Empires 2: Definitive Edition and Age of Mythology: Retold announced for PS5! Utterly fantastic games!