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This is sort of cool. But, sort of weird.

But couldn't this cannabalize PS3 or PS4 sales, or divide the userbase a bit.? They're now going to have essentially 3 home consoles, the vita, PS3 and PS4.

It's a cheap device that lets you use streaming services. I wonder if remote play will let you do 1080p through the PS4 to a tv screen. At 100 bucks its useful for that feature alone. The vita isn't a 1080p screen.