NPD Thread, VGKing.

I'm pretty sure Vita is being sold at a profit. It's been a year since launch and I'm pretty sure they weren't taking major losses then either. The 3-year plan probably was talking about the Vita business as a whole and recouping R&D costs. I'm sure Sony is even working on a Slim Vita to bring those costs down and make that price cut happen.

Retailers are going to stop carrying it. It's selling at a worse month to month clip than the Dreamcast did and PS4/720 are coming and are going to need shelf space. I don't see the PS3/360 going anywhere it terms of retail presence either. Guess which platform(s) will be the odd man out. I'm pretty sure this is the worst selling new major hardware in North American market since either the Virtual Boy or Saturn.

No way in hell. They would've said something like when Nintendo revealed that 3DS was no longer being sold at a loss.

And price cut will lead it further down the hole.

The Vita's not being sold at a profit. (Well maybe in NA with the yen drop, but still unlikely)

They never stated this, and I believe they were going for a "Razor and blades" approach, taking a moderate loss on the hardware and making up with Vita card sales. The only thing Sony said was that Vita would be profitable after 3 years. That means they were taking a loss at launch, can't imagine the component prices dropped that quickly.

I don't want this to be discontinued, but Sony's been taking losses for a long time, and PS4 is looking also to be sold at a loss for a couple of years. PS4 and Vita (with price cut maybe) losses over the next couple years are going to add up.

All AAA development on PS4 currently just screams that we won't be seeing much of Sony 1st party on Vita after the fall titles. They might just be getting ready to pull the plug. The holiday months will be telling.

without checking all those numbers but didn't you forget that god of war 3 released early in the year and gears much later? should be plausible then that gears games had higher sales as god of war in the second year when god of war was already much longer on the market before the second year started.

gears judgment will also have this problem in the second year because it was already released in march.

Actually, Sony did state they sell the Vita for a profit. 

"For Vita, the price on performance was something we definitely wanted to hit, although we all agreed because we are PlayStation, people expect better graphics and prettier pictures, so we have all those things we wanted to achieve in terms of capabilities, but we capped our ambitions with a cost of goods target that we can profitably sell the hardware for $250.

To answer your question, we set out a goal: Yes, we're going to hit the $250 price, and no, we don't want to sell the hardware with a deficit. That's a goal we set out to do and I'm very happy we are achieving that."  - Source

At the very least, they were taking a small loss on the $249 SKU, while makig a profit off the $299 SKU and memory cards.  Of course, that was back when the Vita launched.  I'm sure Sony has been able to cut costs since it's been more than a year after its initial release.