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1.  Most Games you can get on PS360 which are usually better.

2.  Lacks support from First party.  Sony bacically sent this thing out to die when they barely support it.  Give it some compelling software and im sure it would do great.  They have a few like LBP, Tearaway, and Gravity Rush but there hast been any big must have games.  Dont push out mediocre games like Killzone and Resistance Burning Skies and say that is support.  People arent going to buy it when they arent putting quality games on it

3.  Lacks third party support which can be contributed to the lack of first party support.  Monster Hunters is desperately needed.

RIght now its main support has been japanese games but even then it hasnt been getting a ton of support.  It is getting Tales next month but it needs some other games too.  Id recommend sony making something like Legends of Dragoon or Demon's Souls 2 for PSV to help it.  Its a great console and i love it personally.  I want more games for it but really it is up to sony to support it, then third parties will follow.  There needs to be a healthy install base for devs to support it and when sony barely even acknowledges it, why would third parties do so.