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http://www.worldwidestudios.net/locations/japan

There are only two first party studios in Japan: Japan Studio and polyphony. Polyphony only released a single game for the psp. In fact I'd say japan studio is doing a much better job more that ever.

If western publishers aren't interested in the vita, then how do you propose sony get GTA on it. And if western support and thus sales are non existent, how are they supposed to convince square enix, konami, capcom to put their games on the vita. I'll tell you the reason why the vita failed to the 3ds as many times as I need to. Sony is not nintendo. They don't have mario, pokemon, and zelda that appeal to both the east and the west. Not to mention different target audiences.

The whole reason sony create first party games is to sell their hardware and thus gain third party support. If making western first party games cannot attract western third party games, then there's no reason to. Nintendo create hardware TO sell their games. Their strategies and target make them hardly comparable. The 3ds is not a measure of the vita's failure. The psp is.