I own over 50 PSP games and smartphones don't satisfy my needs at all. I don't own a Vita because it is an unworthy successor and I'm hardly unique in this way of thinking. Smarthphones are clearly a factor but lets not pretend that waiting far too late to release an overpriced system with overpriced propriety memory cards and a relative dearth of content didn't decide the Vita's fate.

Noo they wont.
Nintendo dominates that market its noo fighting it.
they will make the vita and it can be a 10 - 12 years handheld(in japan) and thats it.

It sold well because it had more popular IP then 3DS and Vita combined

I do not see another Sony handheld happening. The Vita is powerful enough to be fine for next few years with third party Japanese support.

the problem is that most of Japanese 3rd party are small and can't make AAA games that use the full Vita power

I get the feeling they aren't in any sort of rush to release a new handheld anytime soon but if they did I do think it could have success pending what they focused on and set for goals.

First, Nintendo has demonstrated over and over again that it's possible to rake in cash on smaller (relative) user bases so I think it'd be a good idea to work on a new platform that was cheap and fast to develop for with titles appealing to "on the go" gamers.

Secondly the ideal timing for such a device would get it all the attention it deserves with it possibly even riding on the success of ps4 if it came out somewhere around 6-7 years into the ps4 life cycle since the first major hardware accessory, Morpheus is coming out in the first 2-3 years.

To complete this overall strategy for success in the handheld sector, there needs to be a really really cool feature between the ps4 and psp3. Like holy shit I'm addicted to all this monster taming cool. Or like amiibo cool. Some sort of idea that I haven't thought of yet whilst laying here naked, sprawled out on my bed playing backseat CEO to a multinational multi billion dollar company.

I'm sorry, I forgot the question

I would be surprised if they do.

I f they do it would be only in Japan, so a much smaller project. Or they would succeed the PSTV with a better micro console.

Sony are focusing on Project Morpheus instead of a new handheld if you ask me.

I don't think another handheld would be a good idea.....so Sony is probably going to make one

What do you mean by that? I haven't followed too much the rumors about NX. But I'm curious now.