I think it would be pointless for Sony to enter the handheld fray. Back in PSP days, their offerings felt like redundant overlaps with the console itself.
If we look how Nintendo has evolved moving to the Switch, this move addressed one of my primary concerns that Nintendo was never able to equally provide support between their console and handheld devices, and Switch addressed this by having their game output target one audience, who could play these games in either a handheld or console fashion, whatever suits the user.
The PS5 is too powerful that a handheld could ever run the library natively. They'd have to have a separate library, and this would split their supported output across two devices. It would require fans to spend more. Given too the Switch has a lot of redundant overlap with PlayStation for Japanese games, there's even less reason to see getting a Sony handheld minus whatever exclusives they release on it. If Sony is putting their games on PC anyways, just sticking with a Steam Deck seems a better option.
This dedicated remote play device is, sadly, the better of the two options. Don't really see point though since people likely have cellphones that can already do this. Sony released an iPhone controller... for practically the price of a Switch Lite, or just shy of a Series S. I wonder how much is this monstrosity going to retail for anyways.
They should just scrap the idea, mainly to quell the the outpouring of negative coverage. But still, support remote play, it's a great feature for those who choose to use it.
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