Ok, vita's hitting hard big time, it can be rescued but wont be anywhere close to psp numbers. Its quite depressing really because anyone who's held it knows it is a brilliant machine and capable of AAA games on the go.
So assuming vita flops, Sony would have to be smart and go into the next handheld war with a better strategy. Nintendo aren't the real enemy (and may soon not be at all : more on that in another post) but the enemy is IOS and Android.
I think, if you cant beat them, join them. A highly customised OS based on android OS, with two stores, Google Play and PS Store. A partnership in the handheld space with google would be killer too, where google can deploy some of their apps with exclusive features, such as youtube gmail etc.
That satisfies the core gamer market and the casual market. Maybe a concept on Xperia Play but with a dedicated Playstaton controller, nubs etc.
Also, power isn't everything, as evident by 3DS games, portables dont need powerful hardware, they need easy, cheap hardware that satisfies pick-up-and-play ethos.
Your turn, hopefully cerny is watching and learning.