If Sony was in much better financial shape they could probably make a trade off of short/medium term financial losses and increased sales for the PS-Vita; and make it a viable platform through brute force; in the financial shape they're in I think they're in trouble.
Right now third party publishers are (probably) using current sales, along with historic console sales, to predict the sales of the PS-Vita over the next few years. They will also predict the sales of all other platforms that have been or will be released, and they will allocate their development teams today based on those predictions. Realistically, they will probably be estimating total sales of around 12 million by the end of 2013, and 16 to 21 million by the end of 2014. With sales in this range most publishers would have significant doubts that their resources would be best suited to be used on the PS-Vita, and they would probably allocate them elsewhere.
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