Sony is reportedly developing a new handheld gaming console, designed to compete directly with Nintendo and Microsoft in the portable gaming market. According to Bloomberg, the console is still in development and may not see a release for several years, but it marks a significant shift in Sony's strategy to expand its gaming audience.

The new console will build upon the PlayStation Portal, an eight-inch gaming device released last year that wirelessly streams PS5 games from the cloud. However, Bloomberg reports that the Portal was originally intended to function as a standalone device, capable of playing games natively. This new console will finally realize that vision, allowing users to play PS5 games anywhere, without the need for an active Wi-Fi connection.

The handheld gaming market is highly competitive, with Nintendo dominating the space and Microsoft developing its own handheld Xbox prototype. The market has also seen recent expansion from PC-platform players like Valve's Steam Deck and the ROG Ally lineup from Asus. Sony's entry into this market is a clear attempt to not be left behind and to capitalize on the growing demand for portable gaming.

It's worth noting that Sony has previously released portable gaming consoles, such as the PS Vita and PlayStation Portable, but these have long since been discontinued. This new console marks a renewed effort by Sony to establish itself in the handheld gaming space.

The implications of this console are significant, as it could potentially expand Sony's gaming audience and make its games more accessible to a wider range of players. With the ability to play PS5 games natively, without the need for Wi-Fi, Sony's console could offer a more seamless and convenient gaming experience than its competitors.

While the release of this console is still years away, it's clear that Sony is committed to competing in the handheld gaming market. As the gaming industry continues to evolve, it will be interesting to see how Sony's new console fares against its competitors and whether it can help the company regain its footing in the portable gaming space.

In the broader context, this move by Sony highlights the ongoing shift towards portable and cloud-based gaming. As technology continues to advance, it's likely that we'll see even more innovative solutions for gaming on-the-go. Sony's entry into this market is just the latest example of the company's efforts to stay ahead of the curve and adapt to changing consumer habits.