Sony is reportedly developing a new handheld gaming console, designed to compete directly with Nintendo and Microsoft in the portable gaming market. According to a Bloomberg report, the console is still in development and may not see the light of day for several years, if it's released at all.

The move marks Sony's attempt to re-enter the handheld gaming space, which has seen significant growth in recent years. Nintendo remains a dominant force in the market, with a next-generation successor to its popular Switch console expected to launch next year. Microsoft is also working on its own handheld Xbox prototype, although the company's Gaming CEO, Phil Spencer, has cautioned that the device is still "a few years out."

The handheld gaming category has also seen an influx of new players, including Valve's Steam Deck and the ROG Ally lineup from Asus, which have expanded the market through PC-platform expansion. Sony's new console aims to capitalize on this trend, building on the PlayStation Portal, an eight-inch gaming device released last year that wirelessly streams PS5 games from the cloud.

Interestingly, the PlayStation Portal was originally intended to function as a standalone device, according to Bloomberg. The new handheld console would allow games to be played natively, without the need for an active Wi-Fi connection, potentially expanding Sony's audience and making its games more accessible to a wider range of users.

This isn't Sony's first foray into portable gaming consoles. The company has previously released the PS Vita and PlayStation Portable, although these devices have long since been discontinued. The new console represents a renewed effort by Sony to establish a foothold in the handheld gaming market.

The implications of Sony's move are significant, as the company seeks to challenge Nintendo's dominance in the space. If successful, the new console could potentially shift the balance of power in the gaming industry, particularly if it can offer a seamless, native gaming experience on the go.

As the gaming landscape continues to evolve, Sony's handheld console represents an important development in the ongoing battle for market share. With Nintendo and Microsoft also investing heavily in their own portable gaming offerings, the next few years are likely to be pivotal in shaping the future of the industry.