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DarkTemplar said:

Sony announced, last week, investimens of R$ 100 millions (U$ 50 millions) to produce what they called "telegame".

The approval of a R$ 100 millions Sony project by the Superintendency of the Manaus Free Zone (Suframa) is surrounded by mystery. Possibly for reasons of confidentiality, it's unknow which product will be manufactured in Brazil by the Japanese company. The text submitted to Suframa by Sony cites only the term "telegame". Within the range of Sony's consoles, it can mean both the Playstation 3 and the PS Vita.

Source: a brazilian newspaper

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My thoughts: the brazilian market has more than 40 million costumers and the PS2 is still the leader here, with this move Sony is aiming to make PS3 or Vita more accessible (more cheap) to us.

nah in my opinion the main reasons are rather that china is just getting too expensive and too politically troublesome, so they need options