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It is really quite bad. Sony have helped out a bit with some bundles that come with a memory card (can't remember if it is 4GB or 20GB)

GAME.co.uk have recent had a deal where you get a Vita with a game for £150, but then you have to spend £30 to get an 8GB card. For comparison a 3DS is £140... And this is a discounted deal. If the price came down a bit and a few extra games showed up, then the Vita might really take off