I do not think Sony should ditch the Vita until developers and retailers do. Honestly Sony needs to make back its R&D and manufacturing costs. Now if Sony wants to save Vita they just need to bring some exclusives. I would argue GodOfWar:Ascension , Battle Royal should both be Vita exclusive. If not exclusive both games should have a ton of exclusive Vita content. Sony also needs Gran Turismo this winter. Monster Hunter 4 needs to be cancelled for 3DS and Sony receive it and all future handheld Monster Hunter games exclusively. A Sony/Square exclusive Final Fantasy would also be a good idea. An exclusive CoD game for Vita as well as an exclusive GTA and Assassins Creed. Exclusive entries in many of these series would benefit Sony greatly.

I doubt any of those things will happen. Nintendo seems to have something going on with Capcom or I'm sure Monster Hunter 4 would be on PSVita or a multi-plat. Capcom will most likely not even try the Vita before Japan sales pick up as they are absolutely horrid. (I think you said that.) Same goes with Square Enix. It's not going to happen. Nintendo is in a good area with their 3DS right now, I don't think they will let up.

I think you may be surprised this year. Just a prediciton. 

I don't think so. 

Exactly.

I do not think Sony should ditch the Vita until developers and retailers do. Honestly Sony needs to make back its R&D and manufacturing costs. Now if Sony wants to save Vita they just need to bring some exclusives. I would argue GodOfWar:Ascension , Battle Royal should both be Vita exclusive. If not exclusive both games should have a ton of exclusive Vita content. Sony also needs Gran Turismo this winter. Monster Hunter 4 needs to be cancelled for 3DS and Sony receive it and all future handheld Monster Hunter games exclusively. A Sony/Square exclusive Final Fantasy would also be a good idea. An exclusive CoD game for Vita as well as an exclusive GTA and Assassins Creed. Exclusive entries in many of these series would benefit Sony greatly.

Of course a 50$ price cut would be nearly essential as well. If after all those moves the console is still struggling then a new Vita model will be necessary. A Vita phone would be the smart new model. Phone capabilities added to the device. Sony could get deals with phone carriers. People would buy Vita's in a second if they were free with 3 year contract. The new model could help Sony in shifting hardware. In the end the Vita could potentially still sell 24-million or so units if they can maintain the kind of sales they have had thus far. Without the piracy issue they might even be able to sell a good amount of software. Though of course at the moment the current Vita sales are not impressive

I said it before, but my point of view is clear... japan is key for the portable market and they are in serious trouble there. Of course they shouldn't ditch it, but they're in a very delicate situation there this year and they have to turn on the red light. Let's not forget Vita is doing incredibly low numbers now, better only (and barely) than the Dreamcast. 1 million in japan is looking far... and this is disastrous, no way around it.

I'm not delusional like some people that say, wait for this or that, because waiting for TGS is dangerous. Look how much time those 3DS games took to be released after being announced - a lot of them are still not released - most of them actually, if you think about it.

Vita has Persona 4, Gundam and Hatsune Miku, ... and 3DS has simply the 3 biggest games possible (Mario, Monster Hunter 4 and Animal Crossing) + Pokémon + tons of games bigger than Vita's "biggests" and a very likely remodel! It's already a known fact the thing will explode. And, when things explode, they become uncontrollable, Sony won't be able to counter it.

So that's why, to me, MH4 is the limit. It's when things become really ugly for Vita, the point of no return. What can Sony do to avoid this? I don't know... but they should do something big, shockingly big. In fact, they should already be doing it. I'm curious if Soul Sacrifice can be the "next Monster Hunter", but maybe that's waiting too much, those things are hard to fabricate, most times they just happen.