Don’t hold your breath in hopes for a new PlayStation Vita anytime soon. Though rumors of a possible Vita 2 have been swirling around for years, Sony’s gaming chief Andrew House recently crushed all hope for a new handheld from Sony.  

In an interview with Bloomberg, House said that “there was not a huge demand” for the Vita outside of Japan and Asia. He blames a lifestyle change towards smartphones as the key reason for the disinterest in handhelds.  

Elsewhere in Japan, Nintendo has had little trouble in the handheld market, despite what House says about smartphones. The DS line still sells surprisingly well and Nintendo’s console-handheld hybrid Switch has been selling out around the world ever since it’s launch. Sony’s biggest problem might be that the handheld market is only be big enough for one player.

There’s no doubt that smartphones have made it easier than ever for people to play games on the go and that means exclusives are of the utmost importance. There are only a select few exclusives for the Vita (none of which are very notable), whereas the DS and Switch are chock full of exclusive titles, especially in the Pokemon and anime realms.  

People buy Nintendo handhelds because they like their line-up of games better. Though, for House’s part, he doesn’t believe that Nintendo has cut into Sony’s hardware sales at all. “The folks at Nintendo have their strategy and that’s great. We remain focused around a highly connected gaming experience and also coupled with having a great range of other entertainment experiences so you can reach multiple people on the big screen in the household,” he said to Bloomberg.

Sony isn’t just throwing in the towel though. Instead, they’re riding the wave towards smartphone gaming. Last year, Sony created a studio called ForwardWorks that focuses on mobile gaming in the Japanese and Asian markets.

With Nintendo launching a few of their own mobile games this year, Sony likely won’t be able to avoid competition, even if it does leave the handheld market.