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Europe has been selling PSPs very well just like Japan before the price cut. I suspect the price cut will bring a lot of those PSP sales to Vita, just like it did in Japan.

As for America, Sony needs to establish not just AAA games, but games that are fit for portables. Games like Gran Turismo or Peace Walker were not only high profile titles but also offered nice gameplay chunks that made it easy to take out and play for a bit on the go. Titles like Uncharted which are much more fitting for home consoles is not the right direction.