No joke I think Sega should try releasing a handheld
Hmm. There are really fun arcade games that only stuck in arcade places as they are not released on video game consoles. Technical reasons aside they could be very well playable on video game consoles like some online card games but this is very simple example. While how fun these games may be, physically going to public places just to play them sometimes unreasonable and unrealistic.
So SEGA could release a handheld arcade system you can play anywhere you are.
Some might question why and they would be right. When there are Nintendo and Sony exist and especially Nintendo handheld games are so popular who would play handheld arcade game? This question makes sense.
But then in Japan video game culture is weird. It's divided by arcade gamers and video game console gamers. Arcade gamers really doesn't care about video game industry, they just waste time in arcades for various reasons. They may were bored before meeting with someone, they just came from work, et cetera. These gamer types are not serious gamers who would care about spending long times on a game enough to care about learning its story or making a progression they would like to save. They just wanna do something to distract themselves. Because of it they wouldn't play any Nintendo and Sony game. But they would bother buying a handheld arcade machine.
Then another question arises: "Dude who would buy it when smartphones are super computers that's filled with so many great mobile games?". It's a logical question. But weakness and why repulsive smartphone gaming is for some people is touchscreen gameplay. To arcade gamers feeling the buttons is a better sense. They also don't care enough to fill their phones with games or care about playing games on phone. If smartphone gaming was a big thing in Japan Nintendo couldn't exist. They produce even Switch 2 without forcing you to touchscreens for a good reason. I don't mean it has no touchscreen, I tried to mean they still use physical buttons for a good reason. You gotta feel the button you press before you do special attacks, man lol.
So would SEGA handheld device that attract arcade gamers would sell well?: The thing about business is it's either a good idea or also a bad idea so I don't know.
If I had worked for SEGA and was tasked to come up with a handheld video game console, I would play my bet on arcade games combined with Augmented Reality glasses.
What's Augmented Reality? It's a technology that can turn real world combined with game world. Imagine you walk on streets killing digital people you see on your glasses. (My idea.)
So I twisted your SEGA handheld idea and added it as Augmented Reality glasses with a controller you can use in many ways, and also being able to play the arcade games on that game controller because game controller will also have a screen on it. You may think something like a PSP that you can also use as a weapon to point and shoot in Augmented Reality games you play via its special glasses.
Valve believe virtual reality games will be future of gaming. The fat guy doesn't think no one wanna lose their ability to see just to replace it with Half-Life, swinging their hands by risking breaking their hands. These headsets are too uncomfortable to even enjoy playing for me.
But I think Augmented Reality gaming will be the future of gaming. Imagine you wear a special glasses with headphones, and enjoy the video game reality you can see via game world that combine real life with game world. Imagine playing The Last of Us when these characters dies or something in your room. They sit on your bed, even sleep on your bed. But it depends on where you are. The whole game can be processed via an AI to make it flexible according to where you are. If you are on street, the designated act of "lying down" of the character in that specific scene can be lying down on the floor. It means a dynamic gameplay that what characters does and says depends on where you are too. These games may also have a version that characters are a part of the AI that respond to you according to what you say to them. But I don't think forcing players to talk via their own voice in real life would hinder the appeal of these games so it can be either optional or there may some specific games that's meant to be played like that. So despite the game is Augmented Reality, players should be able to pick dialogue options via physical buttons.
But since how costly it's, every video game company would reject my idea lol.