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ps3-sales! said:

The vita is only a fail if you're comparing sales to the psp and 3ds. As far as the hardware goes, the vita is probably the most impressive handheld gaming device ever assembled. Hopfully software picks up next year and it gets back on track with a major price cut. Remember, the 3ds struggled just as much when it launched because of the same problems (price and no software)

I don't think that's quite true.  In the first 5 months of it's release (from February 2011 - July 2011), the 3DS sold almost 3.5 million units.  It also had it's first million selling game during that timeframe.  That's all prior to the price cut, and without any shopping holidays during that period mind you.  Compare that to the Vita, who to reach 3.5 million units had to be on the market twice as long, about a year.  And even in a full year of being on the market, has yet to have a single million seller.  Also, prior to the price-cut, a bad week of sales for the 3DS meant only 79,000-89,000 units.  Contrast this with a bad week for Vita equating to between 32,000 to 46,000.  To say that 3DS struggled just as much as Vita is now, I think is a bit of a stretch of a comparison.  In actuality, I think Vita takes "struggling" sales to a whole new level.

Having said that, I do not think that Vita, in and of itself, is Sony's worst move in history.  By far, I think the $599 launch price of the PS3 owns that distinction.
It shows a clear lack of understanding of the video game consumer, by the same exact company who used it's launch price as THE major selling point of its system two generations ago at E3 1995:

"at the SEGA Keynote, it was announced that the SEGA Saturn was secretly shipped to retailers the night before, and was now on sale for $399. A move that left retailers unhappy, and gamers without many launch titles to choose from.  This, shortly after, was completely overshadowed by Sony. Steve Race took the stage at Sony’s keynote and announced the release date for the Sony PlayStation. The real shocker, and what could have been the death blow to Sega before the PlayStation was even released, was the announcement that it would release for the price of $299."

Fast forward a decade, and Sony does an about face releasing a $599 console against $399 and $249 competition.  While 70 million + units sold is nothing to scoff at, in the shadow of their previous successes, you can see a clear decline.  The PS3 will be the first Sony home console to not eclipse 100 million units, and after the PS1 & PS2 finished first in their gens, the PS3 is currently in last in it's own gen.  While it's true that only 2 million units separate last from second, Sony has undisputably lost significant marketshare with the PS3 (And like Ricky Bobby's father says, "If you're not first, you're last.").  And, I think that's a direct result of the launch price.  After previously owning a PS1 and PS2 and greatly enjoying them myself, I passed on the PS3 specifically because of the exorbitant price point.  By the time the price dropped, I already owned an XBox 360 and a Wii, and I saw no need to have a third console.  Judging by Sony's loss of marketshare this past gen, I wasn't the only one to think that way.  So yeah, the $599 launch price of the PS3 is my pick for worst move by Sony.