Who knows. Maybe by keeping the price above $250 in indicates a premium/new product to the mainstream and releasing a cheap 12gig model would cheapen the PS3 brand and as soon as that momentum wears off it'll all be downhill from there.

FIXED. 

You are on VgChartz and VgChartz data says PS3 won 2011 as well.

I agree but once it picks up in Japan it coudl easily break 100k per week. It would only need to sell 33k per week per region to achieve this. I think its very possible.

Well it's got 2 games on the COMG chart so that' a start.
Plus games like Soul Sacrifice, One Piece Pirate Warriors 2, Project Versus J..etc. It's finally getting some good Japanese support. I think this will show in the sales.

I'd be more inclined towards ''shockingly dead'' :) Japan is a handheld market and if one cannot sell an average of over 10k per week, then it's.... dead

Why would people buy a Vita when they could get the 3DS which has way more support? Even PSP was a much better choice last year than the Vita.
The Japanese are quick to adopt new systems, but only when those systems offer compelling content.

Vita has more retail titles announced for Q1 in Japan (19) than 3DS has (5).  So if the vicious circle is happening, it hasn't started quite yet.

It helps, however, that the 3DS' lineup includes 3 huge Japanese franchises (Dragon Quest; Dragon Ball; Super Robot Wars), with the big daddy on the horizon (Monster Hunter).

Vita sales will pick up in Japan.  Particular from the week starting February 28th to the end of March, imo.  How high they'll get is another story.  If Persona 4 can spike it up to 35k and Miku can spike it up to 55k then I'm sure we'll be seeing some higher weeks.  

Nothing will be sustained until a price cut though.  The sooner the better, particularly for Japan.

Can you enlighten me with the titles that will be released for the Vita? I know that Soul Sacrifice and Tales of Innoscence R will release and aswell the COMG duo, but what are the other titles?

True but Animal Crossing ensures that January will be Nintendo's, February will be Nintendo's with the release of Dragon Quest VII, and maybe March with Luigi's Mansion.

It is not about quantity but quality ;)

Sadly, the Vita will not pick up based on the established franchises of the above. Only Kingdom Hearts or Final Fantasy can save it from its grave.

Hopefully the vita does not get final fantasy or kingdom hearts, two series that are front loaded and on declines.  And Animal Crossing and Dragon Quest VII does not prevent the Vita from having 100k weeks, which is the center point of the conservation (not Nintendo winning months).  The main issues with vita have been content and price, if Sony can address those (its trying to address one now and promises action on its price from last year) then 100k average weeks should not be hard to do.