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People may have owned PS3s and 360s, but that didn't stop some of those people from buying the graphically inferior Wii?

The PS Vita TV is a Vita, but it's also Sony's Wii. It's an extremely affordable gaming device that plays currently developed games. This alone is going to get sales for it. There are plenty of people who state how interested they are in getting a Vita but don't like the idea of spending $200 to get one or two games. What about spending $99 then?

I think for those who want a cheaper alternative it will do well and boost sales by a fair amount. The least it should do is increase Vita monthly sales by half, maybe double.  It's also yet another Netflix device that you can have another another TV you may not currently have one on.  Or even some people who might want this in the other room because they might want to play PS4 on a different TV, but don't want to pack up everything and move it whenever someone is using the other.  This will allow them to keep the PS4 where it's at and still play it, so this is even more appealing to those who already own Playstation devices.