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Joelcool7 said:

I think this depends on how few PSVita's Sony is willing to sell! I think Vita won't do as well as the PSP for multiple reasons.

-Nintendo is taking Japan (MH and other exclusives), no Nintendo isn't about to let MH go to PSP. Nintendo is bound to give Capcom plenty of incentives to keep MH exclusive.

Why do people all of a sudden assume that Nintendo has exclusive rights to MH now just because one was announced for the 3DS and one wasn't announced for the Vita, yet?  Come on, this is Capcom here.  They are going to have multiple versions of the same game.  Even if takes longer for it to happen, MH will also be coming to Vita.

-A large reason PSP sold was piracy. Nobody paid for games, UMD's or music. Well I did but I was rare. Vita however has been said to have much tougher security measures in place to stop piracy.

Let's not blow things out of proportion.  Hackers and pirates are only in a small minority of owners of any system.  They are also less likely to purchase new models of those consoles when they already have the older models hacked.  In the end, hackers/pirates probably only make up a few million of console purchasers, probably not even close to 10 million. 

-Price, 3DS showed that gamers aren't willing to pay 250-300$ for a handheld. PSVita will have a hard time convincing gamers to shell out that kind of dough. I could see Sony cutting hardware prices by winter 2012 in a move similar to Nintendo's.

And the PSP proved people were willing to pay $250 for a handheld.  And the Vita is going to have an easier time convincing gamers than the PSP, with its extra features and power.  Though, you may be right about the price cut in time for its one year anniversary in Japan.  But it won't be as drastic as Nintendo's was.  They will probably cut by only ~$25-$35, and not a whole $80.  And it will happen after about a year on the market in Japan, not after just 5 months.

-Software, unlike 3DS Sony lacks any exclusive heavy hitters. Other then the few first party titles available there is nothing on the system that will push hardware.

Sony doesn't really need any heavy hitters, at first.  The device is mostly going to sell on its HW appeal and a few good games at launch.  Plus, in the end having multiple games that sell decent numbers and just as good, or even better, than having a couple of heavy hitters.

-Smart phones are no doubt going to lessen both Sony and Nintendo's over all sales.

I doubt it.  At least not to the degree some are projecting.  The truth is, for the most part, they cater to different markets.  One to people who want a cool phone and one to gamers.  And let's not forget, it's not impossible for someone to purchase a 3DS or Vita just because they also bought an iphone or Android phone.  So, in the end, smart phones may take off a few sales, but nothing that is going to damage the handheld market as a whole.

-Battery life, consumers have spoken and 3 hours is not good enough. There will be many waiting for the next model to have an improved battery. Or picking up the extra battery expansion!

This is definitley where I thought Sony could best Nintendo, but it seems they decided to save costs and just be on par with the 3DS.  So this really isn't helping or hurting anyone's chances. 

-Lack of the holiday season, missing 2011 Christmas is Sony's biggest mistake. Sales will not be that high with a spring launch and by the time next Christmas comes 3DS will be in a very strong position!

Well, they won't be missing Japan's holiday season, so they are fine there.  I do think they will be making a mistake if they don't at least get out a few million for the US this holiday.  But, there is still hope for that to happen, as they haven't revealed any concrete plans except for Japan.

-HD, drives dev costs higher so developers will see far more profit from 3DS titles even if they sold equal quantities on PSVita!

I highly doubt the Vita being HD will automatically increase the cost of making games on it.  In fact, it seems Sony has gone out of their way to make it extremely easy to develop for, which cuts down on development time and costs.  Developers have also said that they have been able to port PS3 games over to it in the matter of weeks, so multi-plats in conjunction with the PS3/360 release are going to be easy and cheap.

The only things I see going for PSVita is PlayStation Suite and the support they are receiving from western publishers which Nintendo has lost. If Sony can successfully market the Vita in EMEAA then they have a chance at survival, North America will complement it but without MH and other Japanese exclusives Sony doesn't stand a chance in Japan!

See all above.