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The Vita flopping is a good thing ... Sony needs to be more forward thinking. The gaming-centric handheld is an outdated concept in today's world. They should focus their efforts on actually making a gaming Android tablet/phone ... ones that have *actual game support*, that was and always has been the future.
Gaming only handhelds are aiming for who? Kids (a demographic that Sony is going to lose to Nintendo every time) and a extremely small niche market of overgrown manchildren who some how have hours upon hours a day to play sub-par console-ish games on the go every day. C'mon. Who is this device even made for? Between web surfing/cell phone gaming/email/music/video the average teenager/20-40 something person's cell phone chews up any free time they have during an average day. 
If someone wants Call of Duty, they're going to spend $60 for the real CoD, not $50 for some graphically watered down spin-off that their friends aren't playing. 
For Nintendo, handhelds have always been such a big part of their business that they can't just shut it off, and they serve the kids market well that there's a valid reason for them to stick around (but even for Nintendo I think you can see iOS encroaching all over their traditional strongholds).
The sooner Sony wakes up and realizes there isn't a market for that the better. Instead of fighting against the stream, embrace it. Create sleek looking cell phones and tablets that let you play a little Tekken Vs. Street Fighter or Madden NFL or Little Big Planet in short bursts with proper, but discreet controls. Price the games right too, digital download only, none of this $40 a game crap. No one wants that.