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I hope they won't cuz it might lead people to falsely conclude that powerful handhelds have no market. Nintendo already monopolize the value engineering approach. iPads and tablets are actually powerful (increasingly so) as well as more expensive, yet people are quite content with mind numbing games of mostly addiction based offerings.

Vita just has an identify crisis and it just so happens to be trying to sell in a gimped world economy. Parents are able to keep their iPad upgrades and hand down the iPads to younger children, while teenagers get to have their iPhones and Android phones (much more important to text or whatsapp someone than catching that Pokemon even). Vita is marketing into a very niche market, I see kids picking up demo Vitas with Uncharted..they didnt get it man. They walk over to 3DS and see Mario Tennis...they got that.

Sony also worked themselves into a very tough fiscal situation. The Yen devaluation will help companies such as Toyota or Nintendo, any companies that didnt over reach in their Yen hedging. Sony reportedly is Yen neutral now. So this once in a decade or two chance of selling into a weakening yen won't help them at all.

I really hope as a fan of Sony products that they ease off the Sony empire approach. Building in all sorts of one day Sony products shall unite designs are really hurting their financial performance. They face Korean competion on consumer electronics, they have MSFT choosing to strategically occupy the SAME consumer base on consoles. MSFT never tried to take on Nintendo, they saw Playstation market and wanted that. The HD twin market actually is a bigger market than Nintendo's Wii.

Handheld is a fragile market with smart phones, tablets, facebook, luring away casual gaming time. Sony never bothered to produce enough of their own IPs for the handheld market, when Dragon Quest, Monster Monter, hopped on Nintendo's camp, Vita was left with loss leader strategy as only viable way to pump sales. But The empire was stretched too thin. Sacrificing short term income for long term gains became a pill that woulda killed Sony's credit ratings. And I really feel bad for them cuz they lost out on tablet, smart phone markets which they could have and probably would have taken had thie Playstation success not blindfolded them into this PS3 as center of entertainment hub (just really a cheap blueray player for me).

Sony dropping Vita today would mean the resignation of a crapload of top level excecutives and I dont know if makes any sense to do that.