There is little demand for a handheld console everywhere except Japan and the little demand that exists is occupied by Nintendo and smart phones. Even if Sony had blockbuster releases week after week and a fair price it would still see abysmal sales. Sony likely recognizes this and as such has lowered expectations and refused to cut the price preferring to profit on a small number of units sold.
Their earlier comments about retailers demanding a ps3/vita bundle as well as their cross-buy initiatives have me hopeful that the tech will at least not be wasted and incorporated in a fashion similar to the Wii U.
Yes, the price would be higher but for the price people would be getting a system with the same capabilities as the Wii U along with a system they can take with them and play many of the same games.
If they used specs comparable to the Wii U with the PS 4 along with integrating the Vita, they could launch it at roughly $400 (likely the bottom SKU of the 720) and share multi-platforms with Nintendo instead of MS.
How do you breathe again?
