Forward-looking: Sony is said to be preparing for its return to the handheld gaming market with a device that could rival Nintendo and Valve's efforts. According to a new report, Sony's machine will be a portable console, similar to the Switch, and able to run PlayStation 5 games while on the go.

Sony will be building on the design of the PlayStation Portal device for its handheld console, according to Bloomberg. According to the publication's sources, the Portal, which launched only with the ability to stream games from a PS5 via Wi-Fi using Remote Play, was originally supposed to be a standalone system "like Valve's Steam Deck" before becoming a streaming device.

Bloomberg adds that Sony's handheld is still in development and likely years away from launch. The company might even abandon the plans before then.

The report lacks any other details, so we'll just have to speculate about whether Sony's handheld will only download titles or have physical games like the Switch, or be limited to the PS5's catalog or have exclusives. Moreover, will it be able to run games made for the PlayStation 6, which could be available by the time the device arrives? Specifications such as the resolution and hardware can only be guessed at right now, too.

It's not surprising to learn that Sony is developing a dedicated gaming handheld. Despite essentially being a controller with an 8-inch, 1080p secondary screen, the Portal has sold an estimated 420,000 and 630,000 units in the US, exceeding Sony's initial expectations. It was recently updated so PlayStation Plus Premium subscribers can stream games from the cloud – they don't even need a PS5.

Based on the report, Sony seems to be trying to make a direct Switch, or Switch 2, competitor. Nintendo's handheld only arrived in 2017, yet the 146 million sales of its various iterations have pushed it to the third spot on the list of best-selling consoles of all time. Nintendo recently confirmed that the Switch 2 successor will feature backward compatibility with original Switch games and will support Switch Online titles. The next-gen machine is arriving sometime between January and April next year.

It's not just Sony that could be entering the handheld gaming market. Phil Spencer, CEO of Microsoft Gaming, confirmed in a recent interview that the company is in the research and development phase of developing its own device and working on prototypes. With the launch several years away, we could eventually see a Microsoft vs. Sony vs. Nintendo war in the handheld console market.