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Maybe a more pocket-friendly redesign? Perhaps a hinged model? A Vita phone?

The real enemy here is that something like the new Nexus 7, an iPad, or smartphones are just much better, simpler-to-use proposition for a lot of people. A lot of the audience that would have bought a handheld for some casual puzzle gaming and the occasional other game are getting their fixes elsewhere.

The apathy is staggering based on the most recent sales figures. Since add-ons to consoles have generally low penetration rates, I don't see too many PS4 owners forking out for a Vita controller either. At launch it would be too much money for most, or they would already have one as they are hardcore Sony fans.