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No it's not dead. Sony at least seems to be willing to support it.

Behind the scenes though I wouldn't be surprised if all/most third parties are quietly canning any plans for support.

I mean you got the Wii U/720/PS4 coming up, the PS3/360 still going and Japanese devs and a few Western devs have the 3DS to think about as well.

With these sales, there just isn't an ecosystem to sell anything on. I mean really looking at it today, which dev is going to greenlight some big project for this platform? Nobody.