The PlayStation Vita has more in common with smartphones (aside from actual phone calls) than it does with its only other handheld console competitor (at least right now). Sony is simply putting itself into a position where it is not just fighting for gamers, but also portable media users, and in that market, the Vita will definitely lose to Apple and Samsung. Hell, its even competing against itself with its own Experia phones and tablets.

Price and content will be the biggest reasons why portable console gaming can continue to thrive alongside smartphones and their non-phone enabled cousins like Apple's iPod or Samsung's Note and the full range of tablets. Content is easy for reigning champion Nintendo as simply put, NO ONE has the first party content that Nintendo touts. Between Pokemon and a variety of Mario based games, Nintendo has this area easily dominated. Sony, on the other hand, does have some quality IPs, however, they are IPs that are quickly matched by 3rd parties and exist in almost the same playable forms on either their home consoles or mimicked on every other portable device. Then we come to price. These 3rd party cousins also offer them at pennies to the dollar on iOS, Android, and Windows platforms.  Nintendo figured this issue out early and took a massive reduction in its new 3DS in order to begin saving the platform. Sony cannot afford to do the same as its opening price is already selling at a loss per unit. Furthermore, that price is at par with the other media devices that have far more utilization and in the case of a smartphone, are guaranteed to be in consumers pockets already.

So what is Sony to do? They will continue to put out compelling content to attempt to differentiate it among its competitor's. Looking at the PSP, the biggest of those was Monster Hunter, which is now either exclusive to Nintendo's platform or at least on both platforms. Beyond that, what does Vita offer as a system selling IP along the same lines as Monster Hunter, Mario Kart, Pokemon, Nintendogs, Super Mario Bros, etc which are all 10 or 20 million plus sellers? I can't think of one single IP in ALL of Sony's portable catalog... frankly, not even in Sony's first party home console catalog, except maybe Gran Turismo.

I think Vita will demonstrate a loss in market share for Sony from the PSP on par with what happened between PS2 to PS3. For different reasons mostly. In the end what Sony needs to do is focus on their large phone brand (now exclusively owned by Sony) and their PlayStation brand. The Vita should be left as is and in a year or two they need to promote the merging of these two brands.

The only attempt Sony has had at this so far was the mediocre Experia Play. Mediocre as it was very low powered and even with the beginnings of Sony's Android base store, it was very low supported. However, that doesn't need to be the final push. Had the Vita been slightly smaller with full smartphone capabilities. It would be FAR more desirable to users of all ages.

It would still have the premier game playing capabilities (both its own first party as well as the games in Android itself). It would also have the capability to be that one device people want to carry; a smartphone. Then, you could consider that it won't be losing money per unit. It would be offered through carriers at their contracted rates like any other smartphone. Meaning, $400 to $600 without contract and $200 on contract. A far better pricing strategy that has been proven to work.

Either way, Nintendo is the only company that will maintain or increase its footprint in the mobile gaming market. Its the only one that continuously puts out a hardware/software combination that allows it to remain desirable alongside the rest of the portable device market. Sony is simply competing itself to oblivion.

it seemed obvious from the get go to me that the PS Vita would eventually release and merge into the smart phone market while still keeping its identity to deliver better quality game experiences than its 99 cent counterparts (dedicated controls, bigger budget games, PSN (SEN))

Sony acquired Ericsson.....Check
Sony implemented a unique UI with similar design philosophy to a tablet/smartphone.........Check
A device that can go all digital.....Check
Current models deliver 3g and stress social functionality.....Check

I dont see how you could not come to the conclusion that PS Vita will eventually release a smartphone design along with a wifii only design (like iPhone/iPod).... it will probably be reminiscent of the slider design that was leaked from a dev kit:

Remember this??

When the slider goes down it acts just like your normal smartphone.....when the slider goes up it turns into your dedicated portable game console. Best of both worlds, and it would justify the current price tag to many

My guess is it's coming within 8 - 14 months $199 with contract OR $199 for a wifii only model with no phone functionality. depending on how the PS Vita does in the West, and how soon sony can improve the battery efficieny and implement a lightning fast 4G LTE antenna that will allow for fast enough speeds to play online wherever you are.

It would only be the natural expansion...remember Apple went from ipod ->iphone->ipod->ipad, dont see why sony and the ps vita cant do the same.

This I can definitely see happening. The next "vita" will simply be a phone with all the same features in a more compact design and all the advantages of carrier contracting (if you consider it an advantage).

Then when you count the continued symbiotic relationship with Android, you have a fully featured device with excellent exclusive Playstation content. That is its future and that is where Sony can dominate over its rivals.

Yeah, I agree, also feel that they will implement a wifi only model at like $199 just for those who can still justify a dedicated games device that isn't Nintendo, just because, well why not.

Yea I'm still waiting for a real Playstation Phone the xperia was half assed.

Sounds money wasting, can they risk it?

Which part sounds money wasting? The current Vita or a fictional fully featured Vita-smartphone?

Bad idea nobody buys Sony cell phones. A better idea is for Sony to stop making cell phones it would save them a ton of money.

Me too.

Had the Xperia Play been a top of the line smartphone, I would have bought it. However, it was more similar to the year old or older devices and simply didn't seem worth my upgrade. So I waited a bit longer and bought a Galaxy Nexus from Samsung.

Xperia phones are not as big of the market for many reasons. Prime among them is that they are not offered as widely as Samsung and Motorola.

Example, only one Xperia phone has been available at Verizon, USs largest carrier and that was the mediocre crap that was the Play.

If Sony put its higher end models that actually compete with Samsungs Galaxy line or the Droids, it would do far better.

Likewise, had xperia play been a higher end model that actually competed with phones at the same pricepoint, it would have done far better.