Rumors of a new PlayStation handheld device have surfaced, with technology analysts at Digital Foundry suggesting Sony might have secured exclusive rights to AMD's next-generation RDNA 5 graphics architecture for the potential hardware.
This speculation follows comments made by Sony Interactive Entertainment CEO Hideaki Nishino in June, where he indicated a potential shift towards more hybrid, console-like experiences that cater to modern players who game on the go. Digital Foundry's Richard Leadbetter stated in a Patreon-exclusive segment that there have been "behind-the-scenes discussions" pointing to Sony holding an exclusive arrangement with AMD for RDNA 5 specifically for handheld use.
AMD and Sony have an ongoing collaborative relationship, evidenced by initiatives like 'Project Amethyst,' which contributed to features like PS5 Pro's PSSR 2 and PC/Xbox's FSR 4.1. Leadbetter noted that the only other known handheld chip in AMD's production pipeline is codenamed Z3, which is not expected to feature RDNA 5 graphics.
Meanwhile, Microsoft is also reportedly developing handheld gaming hardware as part of its broader 'Project Helix' initiative. Fortune reported that Microsoft aims to release a handheld device by holiday 2027, with a new console to follow in 2028. While specific chips have not been confirmed, AMD has teased that FSR Diamond will launch with Project Helix, likely running on RDNA 5.
The competitive landscape for handheld chips is heating up. Intel launched its Panther Lake handheld chip at Computex 2026, which early testing suggests outperforms AMD's Ryzen Z2 Extreme. The Z2 Extreme utilizes an older RDNA 3.5 GPU architecture, while Intel's Arc G3, a derivative of its laptop GPU with disabled CPU cores, powers its offering.
The increasing cost of handheld devices presents a challenge for the market. Some analysts fear the category could shrink until the RAM crisis subsides. In this context, Sony's potential exclusive use of RDNA 5 for its handheld could be a significant factor in its cost and performance.
This is not the first time rumors of a PlayStation handheld have emerged. Last year, reports indicated an unannounced PS6 handheld that would support docking and backward compatibility with PS4 and PS5 titles. There were also whispers of a 'PS6 S' model, potentially a more affordable variant similar to the Xbox Series S.