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The Vita has pleanty of games.

I think the biggest issue right now is that Sony has done extremely poor in advertising the Vita.

The next biggest issue is how slow and sparse game localization is; if you look at this reccommended game list, you can see there are 45+ Japan only games being reccommended. Not all of them would be super popular here, but 10 or so of them would make the Vita more applealing to many PSP gamers who have yet to buy a Vita.