Well it is far from dead and I see Sony as having two options. The first and obvious is to just keep pumping out great games (yes it has them) and give it a price cut.
The second solution is less probable but IMO more likely (wtf those contradict (exactly)); turn the Vita into an open emulator. They have been working towards console quality games on the system yet most people incorrectly say "it's better to just play PS3." The other side of the game spectrum is already being filled by smartphones. Well now with full remote play built into the PS4 on EVERY* game I just can't see Vita games of console IPs being successful. Already I'm wondering why I'd play Killzone: Mercenaries on it when I could stream Killzone: Shadow Fall onto it in full HD glory. Heck I even played most of GOW HD collection on my Vita. So now with remote play being seamless, what is the point of Vita games at all? It's already close to that with all of the cross-buy games. Sony should just stop making Vita games.
At the same time very few people would pay $250 just to play PS4 on the go. They first drop the price to $200 and then open up the system so users are encouraged to hack it. Suddenly this device becomes very desirable to a huge chunk of people.
Now the drawback of this is the red ocean strategy. Sony makes money off the software so if they stopped selling software they'd lose money on Vitas. That's why this isn't going to happen lol.
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