PlayStation believes the handheld gaming market only has limited potential.
The technology giant sees big potential in making games for smartphones, but Andrew House, the President and CEO of Sony Computer Entertainment, has questioned the extent of the consumer demand for pure handheld gaming.
Asked about the prospects for handheld gaming in the markets outside of Japan and Asia, he said: "We have not seen that as being a huge market opportunity. The [PlayStation] Vita experience was that outside of Japan and Asia, there was not a huge demand."
And Andrew claimed there was one very specific reason as to why that's been the case.
Speaking to Bloomberg, he explained: "The lifestyle shift toward the dominance of smartphones as the single key device that is always with you was the determining factor."
Andrew said it's also unfair to bring the success of the Nintendo Switch into the discussion, insisting they are two contrasting concepts.
He added: "The Nintendo device is a hybrid device and that's a different approach and strategy."
What's more, Andrew confirmed that the Switch's success hasn't come at the expense of the PlayStation 4, which hasn't witnessed a sales slump since March.
The executive shared: "The folks at Nintendo have their strategy and that's great.
"We remain focused around a highly connected gaming experience and also coupled with having a great range of other entertainment experiences so you can reach multiple people on the big screen in the household."