I suspect handhelds are going to be the future for awhile now. It's not just out of a growing demand or simply because portable graphics processing and battery power have improved (although those factors do help) but it's another chance to:

1. Push locked hardware
2. Funnel to controlled storefronts
3. Bring down and moderate the increasingly unsustainable AAA development costs

Those first two aren't particularly surprising, they're the key elements that Nintendo has honed in on while Sony and particularly Microsoft continue to struggle. Microsoft feels like they've just left XBox to languish while they focus on Game Pass as a means to ensnare you into their economy which is why they're first down this path, but I think Sony will follow shortly. In an ideal world, I'd love to see Sony get back to hardware manufacturing with a Vita like device you could load Linux/SteamOS onto. Vita was a great little product, done so dirty. EDIT: I know the Portal exists, but that's mostly just a dumb receiver as far as I understand it. Still, they're already not too far off ... come on guys, just a little further.

But moreover it's that last point, really. It's hard to continue to push out these extraordinarily big budget, bordering on AAAA (lol) territory games that continue to flop. I know the Switch 2 is already doing stuff like Cyberpunk 2077, but that stuff can still be hell on battery life as well as requiring lower resolution and lowered visuals in portable mode.

I feel like Nintendo is making a big mistake pushing that 4K60 envelope with the Switch 2, although I see why they made that maneuver. The Switch was perpetually underpowered and they felt the need to close that gap, but they already struggle to push out big budget tentpole franchises as is illustrated by Mario Kart World being the only big release title. Also, I just want to generally point this out, Nintendo suffers from needing to up the stakes. It's what lead to Mario Galaxy being such a grand adventure, then Odyssey going even bigger than that. Now we have Kart World because ... gotta get bigger than 8 Deluxe somehow I guess.

I don't know what any of this means or where it's going, I just wanted to try and call out some of these observations. Turbulent times ahead, I don't know that anyone really knows what the next 2-3 years will look like.