He has a point, but beeing in a niche and not beeing profitable are different things.
The attachment rates for the Vita seem pretty good. This means that this niche buys more games than the average games audience. This means that while the userbase might not skyrocket like other devices, this niche seems to be hardcore and hardcore games will find sucess in it.
Will it pull 360/PS3 sales numbers? No it wont, but it will achieve software numbers in the ammounts of 3rd parties on the 3DS. No one can beat Nintendo first party stuff with their impressive legs, but that makes sense as people buy nintendo systems for nintendo games for the most part.
Just like the 3DS, the Vita will have to be fed by the Japanese market. Western developers dont care much about portables and obviously that will not lead western consumers to buy them.
