I think Kaz's ego is the only thing stopping the the Vita being discontinues at this stage. It just a embarrassment that loses money and damages the sony playstation brand name.
You still have to laugh at the pundits that said the 3DS was going be destroyed by the Vita, Nintendo were doomed, etc. Now look at it, the 3DS is a absolute juggernaut of the gaming world and the Vita is more dead than anyone could have ever imagined.