Yeah I guess. A redesign wouldn't be horrible, but I think they'd be better off offering a different design option rather than a new look like done with PSP, though I suppose they did give it upgrades going through models. I think a Vita Go would be attractive for some people; smaller, retractable controls. The issue with that would be the analogs and the back touch, some thoughtful design chances could do it though. It could still be a 5" screen. I just think they really nailed the current Vita model. They might be good just updating firmware to revitalize (no pun intended) its look/interface efficiency.

Would a thinner handheld be better though? I think if it was any thinner it would be uncomfortable to hold. I do understand smaller die sizes but that doesn't require the system to shrink, especially if it would jeapordize the ergonomics. Batteries have barely been improving lately, so a smaller batter would mean a shorter battery life. There isn't a great potential for cost savings from a different battery so if more efficient internals were made I would hope they'd keep the big battery. There would be room for it and it would really increase the battery life compared to downsizing.

That's one of those personal preference issues as far as dimensions go. But I don't see SCE making the PSV any thicker than it needs to be under the "ergonomics" excuse. Sure, a significant redesign (internals) could be thrown into a shell with the same dimensions as the current with a lot more empty internal space, but that would serve little purpose. Product redesigns based upon physical appearance and dimensions sell a lot better than invisible ones simply featuring revised internals. 

As far as the PSV goes, it could be thinner. The iPhone is very comfortable to hold thanks to the smooth contours. Same with the iPad. Both are considerably thinner. Both have better power management. The shoulder buttons are the only area of the PSV that need to be thicker which wouldn't rule out a tear drop design that tapers off at the bottom of the unit, or even curves inwards before tapering off, leaving smooth grooves for the middle fingers to rest. As much as I like the form of the PSV (most comfortable game portable to date for my tastes), I could probably come up with at least a half dozen diferent improved designs that preserved the current control layout. 

Battery is not an issue either. The current battery pack could be made flatter. Larger dimensions in width and height, but reduced depth. Lithium ion cells don't have to be shaped like a brick or chocolate bar; they can be custom made to any shape. 

So, it seems even more obvious now that PS Vita is making money. Of course the final production price is slightly higher because of marketing, distributional and other costs, but still there is a room for price cut. Within about three years this thing will cover R&D and other costs and turn to pure profit. So, most likely it will be a successful venture anyway. And why should Sony ditch it? I see no reason now.

The costs of the material are only a part of the full costs of such a device (not to mention the excessive advertising on launch here in europe). Sony is loosing money with Vita and with PS3.

All Sony needs to do is to add more colors, I mean release a white psvita next week and sales would already go up.

At $160, I doubt Sony are making any profit, if not a loss, on every Vita unit sold. But it's cheaper than I thought...

Yeah exactly, such as retailer margins, distribution costs, packaging, cost from returns of faulty devices, and more.

It's always the same thing. These lists of raw bill of materials appear and the fans immediately draw the conclusion that there's huge potential for profit per hardware unit sold.

so it costs the same to build as the iphone 4s last year. crazy how different people think. iphone price is ok with same build costs, vita price is too high with not even half the price in retail^^  (i know, two different products, but still...)

Ha I like what you're puttin down.  We should be friends.