Editorial: Modern Gaming Handhelds Are Getting Punched Down Just As Momentum Starts To Pick Up

When it comes to portable gaming, the concept has remained primarily tied to proprietary hardware. Although mobile gaming is bigger than ever, estimated roughly half of the market revenue generated in 2024, traditional portable devices are not as established alike years ago. While Nintendo Switch does offer a similar experience, it is however, a hybrid console with its own set of caveats to modern standards.

But there has recently been a push for PC handhelds that leveled the playing field over the past few years. More demanding titles are now available portably without the need for a compressed version on bespoke hardware and instead runs the PC version on silicon at the fraction of the horsepower. Steam Deck; ASUS ROG Ally; Lenovo Legion Go are all examples of this new approach to bring your library on the go which the Switch is still piecing together.

Even cloud streaming is considered to be a major feat that has only fueled this new portable initiative. And the results are showing. With the recent release of the ROG Xbox Ally this past fall, ASUS in its Q3 conference call revealed that demand is high for the handheld whilst remaining on short supply. Similarly, Sony shares a parallel sentiment on the other side of the divide too.

The PlayStation Portal – its in-house remote play device – has also been regarded as the most popular device for the feature. Not only that, the addition of cloud streaming which was implemented around the same time further cements success, it told Tech Radar. “Before we launched the Portal, some questioned whether there would be demand for it […] However, we’ve seen the community’s response has been overwhelming.”

Takuro Fushimi, senior manager, added: “[The] PlayStation portal has now become the most widely used device for PlayStation 5 Remote Play, surpassing mobile, PC, PS5, and PS4.” Despite the strong start and quick adoption, things are already starting to show a grim future ahead. The biggest culprit is AI. The race for RAM & other necessary components for tech has driven prices immensely and put a stranglehold on supply chains.

The most recent example is the impact Valve is facing with the Steam Deck. Upon visiting the official website, you will notice the PC handheld is sold out currently; specifically both OLED options too. The page disclaimer reads: “Steam Deck OLED may be out-of-stock intermittently in some regions due to memory and storage shortages. Steam Deck LCD 256GB is no longer in production, and once sold out will no longer be available.”

This effect from the AI race has only further stricken the scope on contemporary hardware as well as forthcoming SKUs too. In January, it was reported that this dramatic shift in supply is likely to impact the next-generation Xbox & PlayStation. InsiderGaming reported that both consoles are potentially on the verge of missing intended 2027 release prospects next year. 

Valve again is also struggling with the upcoming release of the Steam Machine and its new device lineup with delays issued for later in 2026. “The memory and storage shortages you’ve likely heard about across the industry have rapidly increased since then,” Valve injected in the delay post. “The limited availability and growing prices of these critical components mean we must revisit our exact shipping schedule and pricing.”

Going back to Nintendo, the appeal for the Nintendo Switch is subjective as per consumer. But even its hardware is facing the same issue. Alongside the pricing for the original Nintendo Switch was recently adjusted for inflation, the Nintendo Switch 2 might be nearing the same fate as its PC counterparts too. Thankfully nothing has been confirmed just yet.

When speaking to Kyoto Shimbun, Nintendo president Shuntaro Furukawa said to be actively observing the current climate to approximately determine how Nintendo will proceed with a price increase. “Hardware profitability depends on factors like component procurement conditions, cost reductions through mass production, and the impact of exchange rates and tariffs.”

Furukawa added: “We procure from suppliers based on our medium- to long-term business plans, but the current memory market is very volatile. There is no immediate impact on earnings, but it is something we must monitor closely.” Ultimately, if Nintendo Switch 2 is the remaining option to PC handhelds, you won’t be that worse off in reality.

Previously in July, Digital Foundry compared hardware of the Switch 2 to the Steam Deck and found Nintendo to be more competent. “If there is to be a winner from this face-off, Switch 2 clearly reaps the benefits of a bespoke approach from the developer, the ability to use DLSS and some remarkable efficiency wins. […] Switch 2 goes into this one with a range of unassailable advantages.” You can read the full report by heading here.

Are you surprised by this drastic change in the modern handheld market?