The hardware is great as is for a gamer. It does not however reach out to the more casual crowd. These people want a device that they can comfortably browse the web from or watch netflix. Then their are is the group that want the convinence of Vita quality games on the phone they already have with them. 

Both of these markets, would expand the reach Vita is capable of, and both would be great profit avenues. I think they could leave the price next year, add in built in memory to the current form factor, and introduce the phone and tablet devices, and increase sales. This would increase brand awarness, and in turn spur new sales. All while selling at, at least a small profit per device.

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The Vita has a web browser and a Netflix app.  It has apps for niconico, Skype, youtube, Facebook, Google Maps and others that you would expect.  As far as it being a phone, I just can't see that.  I can't imagine how that wouldn't be awkward.  It does need more productivity apps, though.  I want an e-reader app, personally.

I know it has those apps, and many many more will come with PSM up and rolling. My brother and I love our vita's, but trying to get others interested has been a major up hill battle. I have not heard one person say it is to expensive outside of gaming sites and my gaming friends. All the non gaming minded people that see it only have reasons why they like other devices more. Those are the most common examples I here.

Soooooo the PS3 2006 catch phrase: Just Wait

Were bringing back the trend?

It's a good system, it's just released at a bad time. 

Adults don't want a gaming-only handheld, they have smartphones and tablets.

Which leaves kids. Who flock to cheaper, more kid-friendly Nintendo handhelds.

Sony just can't win here. Price cut will help, but the system will never come close to even being a PSP sized success, that's just all there is to it.

Unless Sony somehow creates the next Pokemon type craze.

What Sony should focus on is trying to get more PSN content on the Vita. I'd love to be able to download Street Fighter III or Street Fighter II HD Remix on Vita. How about Journey on Vita? All those old school arcade games (Simpsons, Ninja Turtles, Contra, Virtua Fighter 2, etc.) that are available on PSN sure would be nice on the Vita too.

Meh, the Vita looks pretty weak given it got outsold by it's competitor on it's first black Friday when it was heavily bundled and amazingly cheap already. There were like 10,000 posts about the amazon bundle, remember?!?

Oh, still got outsold more than 3 to 1....

I'll wait til after Christmas before passing a final judgement but at this time, not looking good for the vita all around the board.

Instead of a price drop on the system, I'd honestly rather have a price drop on games.

NO ONE wants to pay 40 freaking dollars for a handheld game.

If Sony wants to be really bold, lets just axe PS Vita retail copies in the West period. Make everything go through PSN, and now that retail/manufacturing/shipping costs are axed, you can sell the same games for $9.99-$19.99 a pop.

Have download cards available in stores for people who don't like using their credit card.

That's a game changer. Dropping the price of hardware that no one's buying by $50 is not.

There is no future in retail handheld games. Let it go already. 

Who wrote this article? Is this even a real website?

The system did release at a bad time. Outside forces botched the WW launch and Sony didn't have the foresight to predict that staggering the launch would put them under the microscope for low sales in Japan. Delaying to Febraury would have helped them.

The Vita isn't just a dedicated game system, it is a tablet as well with a variety of social & media apps and an up and comming App Store almost identical to Android Marketplace. While it still has a good web browser (not iOS6 or Galaxy 3 good) and plenty of apps consumers don't realize it. Until that App store goes full swing it will be hard to market it as such, though Sony should step their game up to do so as soon as possible.

That price does need to drop down next year and so do the memory cards. When and if Sony makes a new rendition of the Vita, it should include 3G standard to eliminate the wifi only model and an internal 4gb of memory that makes purchasing more friendly and could serve as an easier way to use multiple memory cards. (keeps your icon placements and wallpapers, easier to organize data)

I still think that the Vita can be a big hit, sure its first year sucked but with a few changes it could start to catch on next year and with the capabilities of this device and its future with the PS4 it will sell through the roof. If PSP can sell 14 million in one year an amazing device like the Vita can too and more, all it needs is to attract the public eye and tackle the misconception or lack of awareness the system has right now.

Porting over PSN content isn't an easy task as it would require a significant amount of money and every associated publisher. PS3 games are limited in their ability to transition over to Vita. That's to say the cloud solution doesn't fix that issue, but not everywhere has the internet to utilize that. The PS4 however will be a different story, there could be a healthy PSN game relationship between the two systems. They should be built on similar PC based hardware that would make porting simple and inexpensive.