I think Sony looked at the PS3 / 360 market, and saw that core audiences of 30-something guys who buy GTA, AC, COD, FIFA, Madden in their droves every year and tried to make a handheld that targeted them. Now it wasn't a foolish plan as if they could get them on board in any significant way, then they'd have a core userbase who buy lots of software. Thing is those guys have never bought handhelds before and no one was really sure they could be convinced to buy one.
I don't think it's that they don't want a handheld though, I think it;s simply that no ones every made one that properly appeals to them, Vita included. If Sony keep plugging away at it, get the big IP's for the demographic on board (COD, AC, GTA, their first party stuff) then they might start to reap rewards, they might not. I don't think their is something inherently wrong with this strategy, I just think so far they've failed in execution (marketing, software, pricing).
The one thing I do think at least gives the Vita a chance is that I don't think Sony were expecting a gazillion sales from day one. They seem a lot more grounded since the PS3's dodgy launch and having taken 2-3 years to properly rebound that console, are going about the Vita with a long-term vision rather then hitting the panic switch. They'll no doubt be disappointed with sales thus far though, just I hope not in the way that they were after the PS3 launched.
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