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Are you out of your mind?

Why would Sony not develop a handheld after selling 75 million PSP? Why would they leave Nintendo with 100% marketshare? Sony had to at least try it. Like KazHirai said, it's the long term that matters. PS Vita still has a lot of time to stabilish itself.

And despite not having sold a lot so far (4.1M), it has already been worth having. I love my PS Vita and the games released on it so far.