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I have to agree with Bouzane ...

One of the biggest problems with the PS-Vita is that Sony has not really made a dramatic shift in strategy from what they produced with the PSP and PS3, the market has changed dramatically in the last decade, and Sony is no longer in a position to make this strategy work. This is one of the reasons why I can't fully discount Sony committing suicide with the PS4.

No matter what Sony produced, within a couple of years phones and tablets would have more processing power than the PS-Vita and (with phone subsidies) would cost less than the PS-Vita so fighting a "battle" on technical capabilities is a losing strategy against these devices.

Nintendo has a drastically different approach which is far more viable although Nintendo did not execute it entirely correctly. Analogue sticks, d-pads, buttons, a second screen and 3D provide capabilities beyond what can be done on a smart-phone and make for much higher quality gameplay mechanics than can be done on phones; and the much higher revenues per game sold open up the possibility for much more in-depth gameplay experiences than are possible on smartphones at the moment.

I'm not convinced that Sony understands (or cares about) Nintendo's strategy, and they don't seem to see the flaws in their own strategy. Had Sony focused on the question "What can we add to our system that opens up gameplay mechanisms that can't be matched by smart phones" they would have been far more successful than trying to have a processing power advantage for 12 to 18 months.