I must admit, this has been a slightly confusing issue for me too.

I haven't owned a handheld since GBC. I'm starting commuting in September so I've decided to get one, and I want it to be a Sony handheld (since they have all the franchises I like).

But at the moment, there just are so few reasons to get a Vita. PSP's are much cheaper, the UMD games sell for peanuts now (in most cases) etc.

That said, there aren't any high-profile releases on the horizon in the West for the PSP, so Vita is a much better investment. Albeit an awfully expensive one (if I got a 32GB memory card for all the PSP games I want to play). Also dual analogue. And Gravity Rush.

The issue is Japan..west is getting some really nice games in the coming months..LBP Vita, Ragnarok, Guacamelee, All Stars to name a few. I sincerely do hope things become better in japan for vita, such a wonderful handheld.