http://www.computerandvideogames.com/382406/features/a-second-look-at-ps-vita/

Quite a long-winded article, but a very thorough and decent look through all the positives - and negatives - Vita has seen through its first year on sale, as well as suggestions as to what to look for in the future of the console.  A decent read if you're interested/have the time.

A summary would be "All the pieces are there, Sony have to try and fit them into place".

Sony can only accept what sales come to them. I see Vita selling less than the PSP but I don't see it as a failure. I don't see Sony adding market share in the hand held market. They are in a worse position than they were with the PSP.

PS vita's problem is the same one that plagued the PS3 for the first few years. It's price point, once it got the price cuts it sales picked up considerably, games helped to achieve greater sales too

It really is a very objective, well-constructed article. I couldn't argue with the listed positive or negatives. This is a good read for anyone on the fence.

"Sony has only been in the games business for three console cycles yet the Vita feels like it was crafted by the most experienced hardware designers in the world. This is the PlayStation manufacturer's greatest work yet."

I couldn't agree with that line more. The Vita is by far the best gaming hardware I've ever owned. I was almost shocked by how much I like the console itself; I really wasn't expecting that. It's an actual delight to hold and fiddle around with.

The article gives the Vita low marks for its browser and certain secondary online functions, though I'll just have to take its word for that, as I haven' tried out any of that and really have no interest in using the Vita to check facebook or twitter. It definitely does need more productivity apps, however. That's really something I'd like to see more of.

As far as I can see, the biggest negative the Vita has is the cost of the memory cards. That's the part that feels lame. I won't even quibble with the cost of the console itself, I think it's worth that, but the added on cost is extremely prohibitive. Old PSP titles need to be dropped in price, as well, though I don't know if that's Sony's call or not.

I also agree with the article that the Vita has both quality and quantity when it comes to games. People who say has it has little to offer in that regard are flat-out wrong. Add in PS+, which is almost a necessity for a Vita owner, and there is plenty to play.

Sony was never in a abad situation with the psp as far as I can remember.

One could argue that the Ps3 managed to survive becuase of the Ps2's dominance and glaring reputation from the past gen. PSVita doesnt have thisfrom Psp. Even if it did, it could have been gone since the release of Pspgo I believe. 

They were up against Nintendo who has ruled handhelds for decades.....

Nope. PS3 managed to survive because of lots of price cuts and the Slim redesign + games like Uncharted and all the great 3rd party games like Call of Duty.
The user above you is right. Price point is really important for handhelds especially since its not a phone.

I believe "2real" said "first few years". Assuming that his statement applies to the first couple of years since the console's release. We all know that no major price cuts took place whatsoever, barely any exclusives games came out plus no redesign. Also most, if not all the multiplats in this time frame were inferior to the 360's port. 

The PS3 struggled in its first few years but its sales were never as bad as the PS-Vita and there are a variety of reasons for it; after all, the PS3 sold (roughly) 8 million units in 2007 and 10 million in 2008 to reach 10 million units sold after 14 months and 20 million units sold after 26 months. The PS3's strengths was a huge established brand after the PS2, a media format (Blu-Ray) that had a small but dedicated following, competition (XBox 360) that struggled with quality and appeal in many markets, and agressive price cuts for the first few years.

The PS-Vita is in a very different position ... at the current rate it is selling it will probably take 12 to 14 months for it to sell 5 million units (roughly half the rate of the PS3), the Playstation brand isn't as strong as it once was, the PS-Vita doesn't offer much unique utility (media formats/etc.) that isn't readily available in other devices, their competition is all around very strong, and Sony isn't in a financial position to be particularly agressive with the price.