Write-downs occur to account for lost value of assets.
So they have Vita components somewhere in a warehouse I presume that depreciated in value by 11.2 bln yen, or they had 11.2 bln yen worth of vita components that became completely worthless due to Sony not being able to use them because of lacking vita demand.
Oh gosh, I still don't get why they haven't attempted a psp/vita phone, rebranded of course. Same form factor as the PSP Go.
I know Xperia play was kind of a testing ground but I don't see who that was supposed to appeal to with its weak specs, control scheme and poor support.