Sony, Microsoft, and Nintendo set to clash in handheld gaming market

The news: The console war between Sony, Microsoft, and Nintendo is heating up again, but this time the focus is on the increasingly popular handheld gaming segment. As Nintendo looks to launch the Switch 2 early 2025, Sony and Microsoft are finding creative ways to stay competitive.

Beyond the big three, the PC gaming industry has been making inroads in handhelds. Valve’s Steam Deck, Asus’ ROG Ally, and Lenovo’s Legion are putting the power of gaming notebooks in portable yet capable devices that aren’t locked down to a specific gaming platform.

Can Nintendo recover? The 7-year-old Switch’s shine is fading, causing sales to plummet. Rumored features of its upcoming Switch 2 include 12 GB RAM, 256 GB storage, HDMI 2.1 support, and backward compatibility for its large game library.

Meanwhile, competitors are stepping up.

• Sony is reportedly developing a portable console for PlayStation 5 games, moving beyond its streaming-focused PlayStation Portal. The device would bolster Sony’s push into mobile and live-service gaming.
• Not to be outdone, Microsoft may be crafting a handheld running Windows OS, that will allow access to Steam, GOG, Xbox, and even PlayStation PC titles. But a number of PC manufacturers already have portables that can play games legitimately and be hacked to run unofficial platforms through emulation. 

Key stats: 65% of US teens consume content on video games, per Precise TV and Giraffe Insights. Handheld games can extend this engagement significantly since they’re portable.

The worldwide gaming market is worth an estimated $27.97 billion, per Uswitch, with 83% of gamers ages 16 to 24 playing online.

Gaming planets in alignment: The proliferation of online platforms like Steam, GOG, Battlenet, and Epic Games make access to games far easier than closed ecosystems connected to consoles.

Game studios are reworking their AAA titles to run on handheld devices, ostensibly extending their shelf life and resulting in recurring subscriptions.

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