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At best its a $300 handheld with only a few games available. I never understand why people expect miracles.

3DS didn't do well, actually exceeding predecessors so far, until it reduced its price sub-$200 and had a far larger library of quality games that hit mass appeal.

Vita won't be at that for a year at least. Next Xmas will be the first time it sales well relative to the PSP and even then it will be less due to substantially higher cost barrier.

Only way to fix is to redesign as a smartphone.