Vita sells poorly because it doesn't have the software people expected it to have. The system is almost 2 years old and most of the games you pick up with a Playstation are still absent in new unique iterations. These include but are not limited to GT, GTA, MGS, FF, Tekken, MH, RE, DQ, None of them are even on the horizon. Most of those are from big Japanese firms who would prefer to release on mobile. The one from the west said something ages ago. Given how huge GTA 5 has been I bet a portable version would be a hit especially if online works. I don't know if R* is just slow as balls or if it just didn't pan out.
Sony's current strategy will work out for it eventually. Having $99-$200 "game and watches" with free game subs and uber cheap retro gaming will be alluring to people especially in Japan as well as developing markets. It would just work faster if they had those new unique iterations to lead new interest to the devices. Or Nintendo games, but if VitaTV can sell for 99 today I can see Vita at that price in a year or 2. Impulse purchase price on micro or portable console with vast cheap library and account system.
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