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They tried to appeal to hardcore gamers with a handheld, but that market doesn't really exist (they always prefer home consoles or pcs).

The 3DS has a much better library and is cheaper.

The Vita highly depends on Western studios, but those aren't that good in making handheld games in recent years (or aren't interested anymore). You can also see that with the 3DS. Mostly games from Nintendo and Japanese third parties.