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Market (shrunk)
Games (lack of quality x appeal)
Third Parties (lack of incentive to make exclusives)
Terribly overpriced and mandatory, cards.

The fact that no Vita game has passed 2m tells you all you need to know.The fact that 2 of its biggest sellers are actually trash (COD, AC Liberation) is also very informing. Uncharted (a launch title) was the only game that combined mass appeal with quality production. If we had seen the same applied to more titles like Final Fantasy, GTA, God of War, Elderscrolls, Jak and Daxter reboot etc within the first 2 years it would have been a different story.

I knew the Vita was in trouble when Sony revealed Uncharted and Resistance as its premier launch window titles. It showed me that had no idea what they were doing in terms of software. By the time the launch had arrived it was clear the system didn't have a bright future, aside from LBP and GRavity rush there were no compelling titles in the pipeline.