It seems to me a very interesting situation. There are many unknowns and aspects that Sony will have to resolve.
1- The release date. I suppose they will wait for the release of PS6?
A portable console that runs PS5 games is interesting for the masses today, in 4+ years the new games will be out.
2- Support. The fear of the situation experienced with PSVita comes back to mind.
It will need support from Sony's Studios First to receive new games or adaptations. When the time comes, 3rd party support will be linked to sales.
Compatibility with BC games from PS4/5. Sony is going to have to do a great job in that aspect. Much more than the current BC that is almost limited to working via brute force.
-The price. What kind of product do you have in mind? I doubt that Sony will launch a portable that does not have as a forecast to sell tens of millions. Among other things because it is necessary for the 3rd parties to give it specific support.
In that case, MS/XBOX would have an easier time designing a product of this type because it has Windows on its side and its ecosystem and catalog is connected (Playanywhere) and its software BC system is easily transferable to future devices.
Support for a Windows handheld is simpler and it would be a product that would have 3rd party support by default because it would basically run PC games like RogAlly, SteamDeck etc..
Is SONY thinking of a "steam/Windows" portable console compatible with PC ports of its games??
In 3-4 years we will also have SteamDeck 2, RogAlly2 etc (that play PS Games via Steam and Epic Stores) and, personally, those are more attractive and versatile types of products than those whose closed hardware viability will depend on first party sales and support. That is to say, I don't think Switch 2 is the only enemy to focus on as the author of the article does.