Sony Group Corp (NYSE:SONY) is reportedly developing a new handheld gaming console designed to compete in the growing portable gaming market.

The device, which aims to offer native gameplay for PlayStation 5 titles, is still in its early stages and may take years before hitting the market, the Verge reports.

Nintendo (OTC:NTDOY) and Microsoft Corp (NASDAQ:MSFT) are among Sony’s key rivals in this segment.

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Nintendo, a dominant player in handheld gaming, is preparing to launch the next generation of its Switch console next year, per the report.

Meanwhile, Microsoft is exploring a portable Xbox prototype, though its release is likely years away. The category also sees increased activity from PC-based devices like Valve’s Steam Deck and Asus’ ROG Ally, which have expanded gaming on the go.

Sony plans to build on its existing hardware with this new console. Unlike the PlayStation Portal, which streams PS5 games via Wi-Fi, the upcoming device will run games natively, broadening its potential audience and providing enhanced gaming flexibility.

This new project is not Sony’s first venture into portable gaming. The company previously released the PlayStation Portable and PS Vita, which gained a dedicated fanbase but were ultimately discontinued.

Sony Group stock gained close to 14% year-to-date.

The Game & Network Services (G&NS) division reported a 12% increase in revenue to ¥1.07 trillion while operating income surged 184% to ¥138.8 billion. Sony sold 3.8 million PlayStation 5 units during the quarter, a decline from 4.9 million sold in the same period last year.

Sony expects fiscal 2024 sales of $87.05 billion, above the analyst estimate of $84.85 billion. 

Price Action: SONY stock is up 0.73% at $19.19 premarket at last check Monday.

Photo via Shutterstock

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