He has a point. Microsoft entering the portable dedicated gaming market would be pointless.

He probably means it has too many features and probably also referring to specs.
Vita has an identity crisis. It doesn't really know what it is or who it's supposed to be selling to.

I think he means it's too high end.  As in it has to sell at $250 so it can't compete with phones and the such because its specs are too good to lower price to where the mass consumer would be willing to get it along side a phone or tablet.

Seems to have a clear identity to me; it's shooting for the more "core" segment of the handheld market. The only problem is, that isn't a very big audience in the West. That's why Japan can still save it, handheld gaming is more core there.

Am I the only one who doesn't feel confused by the "It's too good, It does too much" quote? I just assumed he was saying that they put too much into it and made it too expensive for it to become a widely adopted product. Am off with that interpretation somehow?

People have decided that the Vita has no games or developer support and they aren't about to let reality get in the way of that perception, nevermind that Vita news has been flowing pretty well lately.

The Vita doesn't sell because it does too much according to Pachter. I guess that the Wii must have sold a lot because it was shit.

Yea, Pachter seems to think Vita would be more viable if it was a cheap gaming only device and I understand that.

But personally I think it does too little. In my opinion Sony could have gained a lot of momentum by making the Vita a full blown phablet with android/vita gaming OS dual boot, but that would have been more expensive and more risky.