A credible insider suggests that a big design change in the upcoming Xbox handheld console may allow it to natively run PlayStation games.

Spurred from sales of its $199 PS Portal gaming handheld, Sony is reportedly working on a dedicated handheld device that will play PlayStation 5 games.

Sony is reportedly working on a PlayStation handheld that can play PS5 games, but like Xbox's planned device, it's years away.

Sony will look to compete with the Switch and Xbox's in-development handheld device. A Bloomberg report claims Sony is in the early stages of developing a handheld gaming device for PS5 games. The device will aim to rival the Nintendo Switch and an Xbox handheld currently in development at Microsoft.

It's also mentioned in the report that Xbox is prototyping handheld consoles, which has been assumed but not confirmed by Microsoft so far. Recently, Xbox's Phil Spence r said he "loved" the idea of building a device in the future.

It’s said that the device builds on the PlayStation Portal, which was originally designed as something akin to this before moving to streaming.

Sony is reportedly contemplating a new PlayStation gaming handheld, intending to compete with Nintendo and possibly Xbox in the future.

PlayStation is, of course, no stranger to handheld gaming. The PSP constituted the only serious competition Nintendo ever had in the portable console market, and sold more than 76m units. But its successor, the PlayStation Vita, fared less well - and reportedly sold around 16m units.

Sources said plans were at an early stage, but Sony is keen to compete with Nintendo — and potentially, Xbox — in handhelds

Move over, PlayStation Portal—a new Sony handheld is seemingly in the works. But could it compete with the Nintendo Switch or Valve's Steam Deck?

It’s not too late for the major console makers to make a handheld, but reports note a PlayStation handheld may still be years away.