The rumored PlayStation handheld for the PS6 generation may have lost its Xbox competition as Microsoft reportedly shelved its Xbox handheld device to focus on other next-gen Xbox devices.
Windows Central reports that Microsoft's sidelined handheld was intended to run full Xbox games, but the company has other priorities, including a handheld developed with ASUS for Windows games.
Back in November 2024, a Bloomberg report mentioned Sony's interest in targeting Nintendo's market share and competing with Microsoft through its unannounced PlayStation handheld capable of playing PS5 games.
While Microsoft's handheld plans have been somewhat revealed with leaked prototype images, Sony has kept its project secretive, mentioning a focus on profitable peripherals like PlayStation Portal without disclosing specific future plans.