sad reality.

not a bad first a5tempt but consider these things you got wrong.
management said vita as a business was profitable out the gate. They specified that they aren't profiting solely on each sale, but including games and memory cards they are. So, it's a profitable system.
Also, they have been supporting it with uncharted, psabr, tearaway, and soul sacrifice.

I agree more with people who say they got it wrong. Vita shouldve been a phone from the getgo. The 3g is a good direction, but not good enough. It's only real hope at selling better than psp is if it and the ps4 provide an amazing service.

I have read several times that Sony is an engineers driven company. Engineers do the gadgets they want, but those gadgets aren't always what the mass market wants. It seems that they overshoot with the Vita, and the price tag makes it a non so attractive product for the mass market.

Some people say "In forums lots of people want/love their Vitas" and it may be the truth, but who post in forums? A very small number of really dedicated users, not the majority of the buyers. Vita has not mass market appeal, that's what happened. If Sony wants to revive Vita with hardcore experiences, they will fail, the mobile products need mostly arcade/pick and play games, and it seems that Vita library needs much more of them.

A large portion of the losses a system produces are based on fixed costs that you have regardless of how many systems you sell ...

The truth is that there is no grand conspiracy holding the PS-Vita back, this really just relates back to the poor financial position Sony is in. If Sony was in a similar financial position to where they were in the mid 1990s they could have afforded to launch the PS-Vita at $200 with built in memory, they could have several developers producing high end games for the PS-Vita, and they could have money-hatted a lot of third party developers to secure some strong exclusives. Today Sony can't afford (much) in the way of hardware losses, they're closing studios that are not profitable and don't have teams to spare to produce a lot of PS-Vita games, and they don't have the cash on hand to pay for many third party titles.

Basically, you could argue that there are some similarities between the launch of the PS-Vita and the 3DS but the reason why Nintendo was able to improve their fortunes and Sony was not is because Nintendo could afford to do what had to be done.

Neh, I think dedicated Sony fans just doesn't want to see that Sony is making a small loss on the Vita.. by not buying the Vita they are helping Sony... they are waiting until Sony makes a healthy profit on the vita before buying it..

I believe this is the core problem within Sony on the whole ...

If there was a sign that the engineering team over-shot what consumers really wanted it would be that the system has to be sold at a loss to be popular; and, since (maybe) the Playstation, Sony's systems have not been popular without taking significant hardware losses.

Apologies, but i disagree. I think Sony management is horrendous.

Point 1: PS3 at 600 dollars/euros.
Point 2:No differenciation on the Vita.
Point 3: Vita memory card to off-set the cost of the system, trying to cash-in on consumer ignorance.

Their marketing is horrendous (notice that marketing and advertisment arent the same thing), their handhelds dont try to isolate themselves in a section of the market, making it terrible product and brand management. They treat costumers like cows that will eat whatever they throw at you.
Just betting on higher specs as a competitive advantage is a bad strategy since its ever more difficult to see the difference.

With that said, have to hand it to them for PS+ and finally showing Microsoft has the greedy bastards they are to the masses.

I am hopeful they will fix those mistake with the PS4 though. I am looking forward to buying a Playstation again, now with a less arrogant/more modest Sony.

to me PSVita is a Next Gen handheld that is already on shelves, just like WiiU a Next Gen console already available now, both need times to see how developers supporting for the coming years as they grow from their improvements, both are just arrived early for Next Gen...

BTW, this was sort of a joke thread......I guess I made it way to serious.

Really? Cool!

and here I thought that Sony released an overpriced & overpowered Handheld that the masses couldn't care less about, man am I dumb!