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It's a good system, it's just released at a bad time. 

Adults don't want a gaming-only handheld, they have smartphones and tablets.

Which leaves kids. Who flock to cheaper, more kid-friendly Nintendo handhelds.

Sony just can't win here. Price cut will help, but the system will never come close to even being a PSP sized success, that's just all there is to it.

Unless Sony somehow creates the next Pokemon type craze.

What Sony should focus on is trying to get more PSN content on the Vita. I'd love to be able to download Street Fighter III or Street Fighter II HD Remix on Vita. How about Journey on Vita? All those old school arcade games (Simpsons, Ninja Turtles, Contra, Virtua Fighter 2, etc.) that are available on PSN sure would be nice on the Vita too.