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I don't think Vita TV will amount to much more than a niche device.

Regarding the west, I just don't see consumers excited to play Vita games on their TVs with all of the console choices out there and most people already have a device that can stream Netflix and similar services. Regarding Japan, they'll prefer actual Vitas there.

Personally, I think the messaging is all wrong; what Vita TV does with the PS4 is actually pretty cool and the price is right, but I think its biggest problem is that, well, it's being marketed as "Vita TV".