I\'d laugh if Sony even thought of gettin\' in the hand-held market. That is one market that Sony or anyone else can\'t touch for quite awhile. Nintendo has the strongest userbase with the Gameboy, Gameboy Pocket, Gameboy color and now Gameboy Advance. For 12 years, Nintendo has dominated the handheld market, even when other companies like Sega had superior handheld systems. Until something drastic happens and Nintendo loses its \'magic\' hold on the handheld market, I don\'t forsee anyone entering the market and stealing the limelight away from the GBA--that includes Sony.
Entering the handheld market, would result in loss of money, a failed product (something no company wants on their repuation). Not a wise buisness move on Sony\'s part and I would imagine they are aware of this. They had it easy with the Psone. Both Nintendo and Sega was making their own mistakes, so Sony the newcomer just came in and filled that gap, thus making the Psone the mainstream console it is today. They wouldn\'t have such an advantage in the handheld market. Instead, they would launch to a market that is fully dominated by one company and has been for 12 years.
On another note; the suggestions that they should just scale down the Psone to fit in a handheld. Can you imagine the batteries all that would suck? You can\'t have all the power without the cost of something and that would be battery power. Then there was the idea to port the original Psone games to the handheld. Here is a problem for that. The Psone controller has eight action buttons. At most, you can fit six on a handeld, and even then you are pushing limits, so as you can see this is goin\' to pose some control issues for quite a few games.
And, I\'d also like to say this on a personal level. I don\'t want Sony in the handheld market. Sony was the company that pushed this \'everything has to be 3D\' notion with developers. But, right now, with the GBA and what not, handhelds are the last resort of 2D gaming. I would bet Sony would try to get developers to make 3D handheld games, thus ushering in the end of 2D games for good.

Yes, I\'m alittle paranoid about my 2D games dissappearing.