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Vita is a good system and even had a new Uncharted game at launch that was pretty good. And other good games like Gravity Rush and Tearaway early in the product cycle.

They did what they could.

Sony's bread and butter demographic are teenagers and college age young adults, and good luck getting that crowd to carry around a game handheld ever again (outside of Japan).

https://youtu.be/ZzcjDFgKZlg?t=20s

This is the world we live in today. Everyone is obsessed with their smartphone, can't even sit still for 15 minutes without using it for something.