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naruball said:

Correct me if I'm wrong, but mh4 was announced as an exclusive even before the vita launched and on the day of its launch, a port of a mh game was released on 3ds. This destroyed any momentum or hype/excitement for the vita. Why buy a vita when you can buy a 3ds which has Mario, Pokemon AND Monster Hunter. Even people who were not interested in any of those titles, suddendly thought lowly of the vita. It got the "it has no games" reputation and the sales plummeted.

I think that's a large part of what happened. Even if you don't care about Monster Hunter at all (like me!) it still matters a lot because the game that made the PSP has flown the coop, and that really changes your image of the whole product. Just like how consumers who didn't care about Final Fantasy had to take the PS1 more seriously because of it, either directly or indirectly since that kind of a thing is a also huge signal to other publishers and developers.

It's still baffling to me that Sony just sat there and let such a thing happen. They bothered to get all this feedback on what third parties wanted out of a handheld, but they didn't bother to actually sign any games. The thing about being dangerously reliant on third parties is that you have to make sure they're going to show up, but after the PS1 and PS2 I guess they just took it for granted that they would. Still, the PS3 should have been a wake up call. The PS3 had it bad enough without even really losing any games. It only had to share them with the 360. But at a certain point in the process Sony had to know that the Vita had nothing concrete... and they launched it anyway.