The Vita is between a rock and a hard place right now. I don't think even a price cut could rectify this because it's just missing interesting games. The games that are somewhat worth mentioning are Uncharted, Gravity Rush and maybe Unit 13. All the other games are either ports, tech demos, iOS quality or just plain bad.
The future looks grim. The only game I am interested in is Soul Sacrifice and thats coming out early 2013 IN JAPAN, so god knows when in europe.

Sony is just way over their head with what they can do. They still heavily support the PS3 (TLOU, LG, GoW, PSASBR etc.), they sure as hell have started developement on some PS4 games and now they realize that the PSV will not be successful on third parties alone. But they don't have the capacities to up the ante on vita support so they try to mask the game shortage with a flood on cool little gimmicky, but ultimately iOS quality PSN games (JSR, Sound Shapes, Retro City Rampage, Strangers Wrath and so forth). Problem is, neither the size nor the price of the memory cards supports this digital flood. I have a 8GB card and its full already and I don't really want to spent time managing my games.

So if they want to buy time short term with digital games they need to drop the memory prices by A LOT. I am talking about getting 4 and 8GB OFF THE MARKET and going with 16GB 15€, 32GB 30€ and a new 64GB card for 50€. Sony is throwing gigabytes at vita owners so they need to make sure we can catch them.

For the future, I hope for Sony they already have God of War, Ratchet & Clank, Jak & Daxter, GT, Killzone and a new Uncharted in the pipeline or this thing will go under if the next big things are coming like late 2013.

Right now the outlook for "great & exclusive" retail games is LBP, Sly, AllStars, CoD, AC3, Soul Sacrifice. 6 games, 2 of them being PS3 ports. That's just grim.

Firstly, the handheld CAN be sold at $250, remember that price comes from customers perception and not the tech behind.

So...

- Better marketing.- forget about that PS3 users / hardcore idea. VITA is a must have for everyone.
- Games.- you want to play games and say wow. VITA can do that. Forget about graphics, look for gameplay.
- Unique experiences.- Make games that other devices cannot do. Don't use like a ps3 controller, the handheld is worthy by its own as it can do a lot of more things.

If Vita has the latest two, again market correctly the thing and forget about the minority hardcore forums dwellers.

I'd venture to say the quality of the games are a pretty large factor at the moment but maybe that is overshadowed by the price point.

Sony's also very bad at showing actual gameplay. Even when they do show games in the Kevin Butler commercials, they're generally cinematics. The Crash Bandicoot commercials were a good example (also hilarious Nintendo bashing):

http://www.youtube.com/watch?v=mTi5EaocGaY

Haha wow, that commercial is hilarious! I guess Mario is still trembling in fear before the mighty Crash Bandicoot xD

This would be an attack on multiple fronts. I would:

-launch a "It's not PSP. It's PSV!" Campaign showing all of the improvements that the Vita has ove, not only the PSP but, the 3DS.
-I would insert the Vita into popular media showing people using it in their everyday lives. Movies, TV showa, in the background of WWE programming, etc.
-The people have begged and begged for a Pokemon online RPG and Nintendo has consistently ignored them. I would create a Pokemon rip-off that works online AND in a diminished capacity over 3G network

I'm posting via phone and the guy next to me suddenly wants to have a conversation
-

Sony just bought gakkai,may be cloud gaming is their plan now
http://www.gamesindustry.com/industry-news/detail/231769

I'm a Sony and Nintendo Fan. I want both of these companies to be successful and I really do enjoy what they both have to offer. I already have and enjoy my 3DS, but I was waiting to get a Vita when there was a game I was actually interested in playing. Gravity Rush looks cool, but it's not worth buying the system itself. I am a fan of Uncharted, but GA doesn't appear that appealing to me for some reason. The single game that convinced me to buy a 3DS was Kid Icarus. The Vita just doesn't have any game like that (for me anyway, and I think a lot of people feel that way.) I'm not saying the Vita games are bad, just nothing screams "Omg you NEED to play me!".

Price and memory being included in a bundle would be nice, but I think the biggest problem for the Vita right now is a lack of a system seller. Like others have already said if they could get new MH, GT, or an exclusive Final Fantasy that definitely might help it out.

Sony has a tough job. The real competition isn't the 3DS, it's the cheap, game-capable smartphones flooding the industrializing world. Vita succeeds or fails on whether it can become the premier gaming platform for the biggest, fastest-growing videogame market in the world: the BRICs (Brazil, Russia, India, China). That means a mix of global games, plus local studios producing regional content.

And yes, those memory card prices need to come down.

I don't think smartphone gaming is really a threat considering you only use the touch screen and the screen is quite small.  Not only that, but I know someone who plays those kinds of games, and they have never really been much of a person who bought gaming systems at all.  

Who in their right mind would replace a gaming console over a $1 repetitive smartphone game app?  Only those who wouldn't have bought a Vita or 3DS anyway.  The 3DS and Vita also have games that resemble these smartphone games as well, if you look at their online shops.  They may be slightly more expensive, but you don't have to pay to have a plan on a gaming console and gaming on a 3DS and Vita is more ergonomically correct for these things.  So barely anyone who would have bought one would replace their gaming to the smartphones.