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kowenicki said:

Becasue it knew what it was... it was a handheld with a USP.  The Vita USP seems to be that it is a miniature PS3.... home console gaming in your hand... one question... why?

When Miyamoto talks about software I dont think he is talking about games (like most here seem to think - games being in short supply early on is a given).... he is talking about the device itself... its firmware... its purpose... its raison d'etre.

I don't really get what you mean.

If you exclude the games, the PS Vita is a solid product and it's not that different to the 3DS. The system's "purpose" is dependent on games in my opinion, whatever games SONY and other developers put on the PS Vita will decide what the system's purpose is, and that will determine the system's future. Firmware updates and price-cuts can iron out all the other creases. The only thing that SONY can't change is the hardware, which is pretty much flawless in my opinion, the only problem being that it isn't as portable as the 3DS.