Your whole logic on the Monster Hunter thing seems really backwards to me. It's not about them "not wanting to upgrade the series", but more like I imagine they looked at the user bases of each portable and saw 50m vs 10m (At the time this was lower) and wanted to go with the one that could get to more audiences.
Also, in my opinion I don't think there is any "saving" the Vita anymore. Sony has left it by itself for too long and I think people have lost faith in them supporting it.
The problem is that every single time Sony actually does release a first party game on it, there seems to be immediately right after is a long while where they just don't release anything. They need to keep the releases going and not just release 1 then wait and release another. That's at least what it seems like to me, I could be wrong though.
Also I agree about the games thing as well. Sony has done a decent job of getting big name IPs on the system such as Uncharted and LittleBigPlanet, but what about the others? Why was there not a God of War PS Vita game, or a LocoRoco or Patapon game? When I think of the PSP I think of classic games like Patapon and LocoRoco as well, why have they not brought them back?
The only place the Vita has seemed to have found semi-success (I say that loosely) is in Japan because compared to everywhere else the Vita is actually selling quite decently there and has gotten a lot of support over there as well.
I've started wondering though that maybe if other first party games like Killzone: Mercenary eventually sell over 1 million on the Vita, maybe that will influence Sony to actually see that it can be a profitable system and worth the time and money to create more games for.
Honestly though I think if Sony does want to try and "save" the Vita in anyway they just need to really get back up and do a huge revision of it. Have a new model created and launch it with a price cut like you said, and actually start putting big games on it and supporting it a lot more. Then I imagine Vita sales could really start picking up. Also advertise it consistently and get the word out there.







