Vita is like a mini PS3 which is not a bad thing.. it just doesn't stand out. They didn't offer much handheld experience tbh, nothing to set it apart. Even in Japan it hasn't hit the ground running which is extremely worrying. Been saying from the start they need to cater for that specific audience.
In terms of why the PSP did well, it was two reasons:
1. The initial hype in the West where Sony were definitely going to overtake the handheld market as they did with home consoles. It dwindled out though after the third year and never really recovered in the West.
2. Japan was the saving grace. Monster Hunter kick started the PSP revival and then it pretty much replaced the play station home console as the main PS console in Japan.
Unfortunately Sony didn't consider that the Western hype was not there at all. Mobile gaming was another issue. It also failed to get their most important Japanese IP which was (imo) the final nail in the coffin. It's been a complete failure up to now. It would take big balls from Sony to go back to the handheld market now.
In terms of how they should've tackled it, I think they should've reconsidered their PSP approach especially in the West. And it would've helped if they focused their attention to where the real successes were which was Japan. They should have retained the MH series but they didn't and it's tough to see how they can recover from that now. Unless they get a break out series (so far it's been Youkai Watch on the 3DS) then the generation is over for them.
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