We know what you're thinking, and yes, it certainly feels like rumours of a new PlayStation handheld have been swirling since... well, probably since the launch of the Vita. But now, we have a slightly more credible report from Bloomberg (thanks, VGC), claiming that Sony may well be developing a new 'PSP' to compete more directly with Nintendo.
According to Bloomberg, development of a new handheld is in the early stages and, much like Microsoft's planned portable device, likely won't launch for some years to come. As such, the company may still decide against bringing it to market, though given the remarkable success of the Switch and the hype surrounding its successor, we honestly wouldn't be surprised if Sony dipped its toes further back into the world of handheld gaming.
As for what the 'PSP' will be capable of, Bloomberg states that it will build upon the foundations of the PlayStation Portal, but rather than requiring the cloud to stream PS5 games, the device will instead play them natively. In other words, don't expect many (if any) bespoke handheld games like Tearaway or Uncharted: Golden Abyss.
Having direct competition from both Sony and Microsoft within the handheld space would no doubt make the 'Switch 2' a slightly trickier proposition for some consumers. That said, if rumours of both firms are to be believed, it's likely the Switch successor would have the console handheld market all to itself for at least two or three years or so. Combine that with the stellar first-party software that Nintendo is known for, and we'd say the company will have little to worry about. At least for the time being.