People have the incorrect notion that Sony dropped the Vita because of how it sold, when they unofficially dropped it before it was even out. Reason being the high budget of making home-console-like games approaching home console levels and not making sense doing that on two separate systems. When they saw the bills on Uncharted GA and Killzone Merc building up they already knew "yeah this isn't going to work, bad idea". Why do you think some companies that gave the PSP pretty damn good support either didn't give Vita any from the start or cheaped out (SE and Konami being examples), they saw the writing on the wall before Sony did. Higher costs, same/lower revenue. Unsustainable.
If something like this exists it's either a cheap low end Nintendo-style handheld meant for direct competition or it's something that is somehow going to tie in with "sharing a library" with PS4. There are no other possibilities.
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