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brendude13 said:

All consoles tend to be considered dated a year after they come out, Crysis released just one year after the PS3 came out and put the graphics of console games to shame, still, not many people cared. I think after the huge successes that the PS2 and the Wii were, SONY, Ninty (they got the point way back in 2006) and MS have finally gotten the point that the mass market doesn't care about how powerful hardware is. Putting lower power hardware into their systems will result in a lower price, a higher profit and more regular generation cycles.

I agree about making the Vita like a smartphone though, they shouldn't market it as one, but they should add smartphone capabilities. When I played the Vita last week, I was surprised by how much it felt like a smartphone, the user interface and reliance on the touch screen made it feel like an iPod / iPhone. I'm ashamed to say I loved it though, using the touchscreen felt so fluid and the UI was streamlined, if you don't want a certain application or game on the home screen, remove it. The UI could be extremely useful at integrating applications.

Sony should actually make some use of the 3G and include the ability to make phone calls in the 3G package, as well as release applications on the PS store, Google Earth was a great start. Gaming machine first, multi-tasking device (I refuse to call it a smart phone ) second.

I like your home console / pc comparison and I agree with it overall.

The markets are merging both in portable media as well as home entertainment. For decades PCs never dominated gaming over consoles due to physical separation of the devices (TV vs computer room/monitor), simplicity of control/setup, and local community play.

For portables it was simply that similar portable devices just didn't exist. However, that distinction is quickly evaporating as mobile media devices are quickly evolving to be the be all solution for just about anything. Even controls are handled by the fact that my Android phone can sync with my bluetooth PS3 or Wii controllers. For home systems this will also become more apparent over the next generation as devices like iTV, Google TV, and eventually Windows8 push full computing to the front room TV with simplistic ease. In reality this end is exactly what MS wanted when it  created the Xbox brand. MS never wanted to create a stand alone game console. Xbox is simply a beachhead for PCs in the front room since Windows Media Center with PCs never took off.

Sony's only issue with this whole scenario is the OS. It doesn't have one. However, it can utilize kings of other worlds. It can use Android to not only provide a clear market leader experience, but also tailor it to suite its PlayStation and other unique brands. All the while not providing too much money back to its competitor, MS.

I think Vita will sell far less than the PSP overall and it will be the last dedicated portable console from Sony. However, it shouldn't have been if it were a smartphone/tablet like device as it would have given the potential to beachhead its own new market of core gaming in the more mass market portable media sphere.