I think it's sold for a profit too......but it's actually got to sell to make that profit.  The strategy has changed, but I'm not sure how well it's working.

You could be right, I don't know much about markets and all. 

But, from my perspective, the Vita has a pretty good library and price. While the library/price may not be amazing, it definitely warrants more sales than what it's currently getting. And then when you look at the PSP, which didn't launch to a much better library than the Vita, you have to assume that there's another factor that effects the Vita. You cold argue that the Playstation brand has diminished. While that is true, I don't believe that it has diminished so much that the result is the sales of the Vita. There must be some other, more important factor. 

Whatever the reason is, it'll become more clear in a few months I think. Until then, I have my beliefs.

It hints to what Sony might do with the PS4 though.

I agree APM...i dont think its only Sony that is doomed but pretty much the entire dedicated console gaming industry. Selling expensive consoles and games is simply not working for anyone. Ive posted a lot about how i feel about the topic so wont go into it here again. But i feel a new strategy is needed for console makers if they want to stay relevant to consumers.

And it's not selling because it lacks compelling software. It's not a hardware issue, the hardware strategy is great, but it's dependent on software. 

If people think the Playstation brand is in trouble in any way I feel bad for them. They are so misinformed.
Sure there is no AAA game this holiday(last year we had Uncharted) but there are a variety of great games such LBP Karting and PS All-Stars along with the usual 3rd party juggernauts. Not having a AAA title this holiday could actually be a smart move by Sony. It strengthens their relationship with 3rd parties which is what they should be doing now that a transition into next-gen is starting.

Hard to say given that the Game division posted a loss last quarter.   If PS3 is sold at a profit now, where did that loss come from?

The PSV memory cards.

It's far from doomed. The PS3 has the second best sales rate of the generation despite a very bad launch. If that launch did not hurt the Playstation brand in the long run then I'd say it's pretty healthy.

Sony has already said they want the gaming division to be a major part of their business going forward. It's where they see a measure of stability. I think the Vita will catch on in Japan, just like the PSP. In the west, we'll have to see. The PS4 has just as much chance as the other members of the market. History has taught us that success or failure in one generation does not automatically carry over into the next. It's a clean slate. We really have no idea which consoles will flourish.

"Now, of course, the Vita is selling like garbage, but that can be attributed almost absolutely to software support, or lack thereof and the total opposite situation for it’s closest competitor, the 3DS, which has a great catalogue of titles."

As an owner of a launch 3DS, its catalogue in the West is dreadful. No idea where this belief that it has a good library stems from. NSMB2 came out mid august and since then the only games worth noting have been Art Academy and Code of Princess which came out just this month. The Vita's first year library is much stronger than the 3DS' first year library and I'm sure all fellow 3DS and Vita launch owners that had to wait until November for MK7 and SM3DL would agree. Such a drought of games on a platform outperforming the original DS is unacceptable.

The Vita's abysmal sales are attributable to the fact that it's too expensive in a market where all 3 major home consoles are more affordable and naturally have larger libraries, its competitor has stronger brand power at the moment and a cheaper handheld platform, and of course the eroded Sony brand. The proprietary memory doesn't help either. It could be the most amazing piece of tech in the world, but the average person will ask "why on earth does it cost as much as a home console that's capable of playing blu-rays and 3D games".

Also to clarify before an army of irrational fans throw their angry posts at me, the 3DS library in Japan is phenomenal, but that's just one market whereas the 3DS is greatly outselling the Vita in markets where its library isn't all that strong.

As for the Playstation brand in general, I think it's just a matter of the PS3's poor start which began the erosion of the Playstation brand that didn't stop until 2009, and in turn severed its strong relations with third parties. I can guarantee you if the PS3 replicated the PS2s success and the 360 and Wii flunked, you wouldn't have seen FF, Tekken and DQ go to other console platforms. It's created a new culture at Sony where they rely heavily on first party titles, which I think is a positive. While the brand is far from doomed as PS3 sales are solid, they'll just have to buckle up like Nintendo did with the N64 and GC. We're seeing a generation of gaming where all 3 competitors are equally favourable in the consumer's eye, and it has nothing to do with the PS brand dying. If anything the brand was in a worse state after the first year of this generation.

Apologies for the poor editing, I have no time.