The handheld market is a fad that is only kept alive by Nintendo games. The DS and PSP saw great success as a precursor to smartphones, their successors already showed the decline thanks to the smart device revolution. The 3DS was only propped up by exclusives.
The mobility aspect of a console is not a main concern anymore and merely a bonus. Even Nintendo saw that and just combined mobile with stationary to hide the decline. The success of the Switch is a product of great exclusive software and passable hardware, the portability is a big bonus, but wouldn't be able to sell on its own.
I wouldn't call it a failure when you pull out of a market that practically doesn't exist anymore. If anything releasing the Vita at all was their biggest failure.
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