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They are correct in that Sony seems to be banking less on producing or securing quality software for the handheld system exclusively as they are trying to build it as a extension of the PS home console and device to play digital software.

In a way, it makes sense, the PSP only thrived in Japan based on Monster Hunter and other Japanese developers providing cheaper software for it rather then trying to gamble with investing into a heavy HD projects. Sony can't really bank on lighting striking twice especially given the 3DS is far closer to the Vita then the DS was to the PSP and closer to the budget range Japan seems to prefer. This also means there might be hope for the system to do well outside of the Japanese market provided people take the bait of being able to play their PS3 and PS4 games on the go.