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

PlayStation 5 games may now be played anywhere thanks to a new portable gaming system that Sony is currently producing. The console is reportedly "years away from launch" — if Sony chooses to release it at all — and is being built to compete with Nintendo and Microsoft in the portable gaming market,

Sony seems to be shifting gears, as a new report claims that another PlayStation handheld system is in the works, hoped to be able to play PS5 games natively.