PSP was big because lets face it, it was the portable media player before smartphones. Now my smart phone does all that and more.

VITA is essentially a great gaming machine with moot features.

I thought the psp was such a succes cause it could be hacked easily...

Maybe the Vita will be a succes if it also get fully hacked..

well that was part of it, being able to paly emulated games on the go lol. Nw your smart phone does it. I even got a phonejoy gamepad (looks like a ps controller) for my phone lol.

I'd like to think that they have some idea why they're in that position, but that they can't say it publicly. I say this because I find it hard to believe that they think the problem for the Vita was the rise of smartphones, etc, when the 3DS hasn't been negatively impacted by that rise. Either they know that the explanation provided in that interview was false (and thus were simply engaging in PR), or they're truly incompetent.

As always, the key to success is games. And there's a reason why, with 7 million units out there, only one game has broken the 1 million mark, and only barely - the PS4 already has five games ahead of that, the Wii U has four games that have sold more than that game, and Xbox One already has a game that has sold more, despite having an install base of less than half that of the Vita. The 3DS has 20 games that have sold more than that, including three that have sold more than the Vita's entire install base.

The Vita no doubt has some great games. But the problem is that none of those games are really selling the system to people - and when they have the 3DS and mobile gaming as alternatives, it's not enough to just have great games, the games have to leverage anything that makes the Vita unique. Otherwise, there are great games available on the 3DS and mobile gaming, too.

The Wii U suffers from this to a lesser degree. When the alternatives are PS4 and XBO, Nintendo needs to provide great games that show the consumer the value in the system. The Wii did this on day one with Wii Sports. Wii U doesn't have its definitive game, yet, which is why the Wii U hasn't truly taken off in the way that the Wii and DS did, in the way that the 3DS has. The Wii U, at least, does have some glimpses, though - Nintendo Land, Wii Fit U, Rayman Legends, and ZombiU all come to mind. And Nintendo, of course, has the other benefit, which is a set of franchises that people can't get anywhere else, and the Wii U will be the definitive version (as opposed to PS Vita, which will be technically inferior to the PS4). But it still needs to prove its value, which is why it will, for the time being, sell less well than PS4, and possibly XBO (although XBO hasn't proven itself, yet).

I have a question. I don't understand what the Vita TV is. Is it a console that lets you play Vita games on the tv, or is it a machine that connects your Vita to the machine?

Vita.TV is set-top box that allows you to play Vita games as well. So it's the former from your question. 

Digital sales,ps+ free games etc could also be the reason for those low physical/retail sales though.

As he said in the interview:

"Compared to PS3, Vita has had a higher percentage of games bought digitally since it was first launched.More Vita games are still consumed through physical game cards than they are through digital, but things are increasingly moving the other way."

Vita may not be having some great sales now but soon it will get some good attention due to the connectivity and Sony's focus on Vita(they were busy in PS4 launch which is the big for the company to get their financial position back to normal compared to Vita which is just a small part of gaming).

Since all of the current-gen systems have the ability to download most retail games, I don't really see your point. Even if Vita had a somewhat higher percentage as compared to the other systems, it wouldn't really change the fact that the other systems have more big-selling games in a shorter time, or the fact that the 3DS has three games that have sold more copies than there are Vitas.

Keep in mind, this isn't intended as a slight against the Vita - I'm not asserting that the Vita has only bad games (I'm quite sure that it has some great games). All I'm pointing out is that it's the game situation that is holding Vita back - that there's no game out there convincing people that they need a Vita, when the PS4 exists with most of the same franchises but in higher fidelity. It's something Sony needs to rectify - it needs to bring something to the Vita that you just can't do anywhere else (including on the PS4).

I saw a couple of comments like yours and i completely disagree.

They have not said anything about the future of the Vita. He only explained why it has been slow on sales so far. He also said they have to increase the value proposition of the system to convince consumers to get them.

So... your comment doesnt really make any sense. Besides he is just a UK PR. I dont think he would represent the whole of SCEE. And i believe that is why he didnt give specifics on Sony's future plans. We know that remote play and indie games are measures they are using to increase the value of the Vita. But the one everyone wants to know are exclusives.

We also know SCEE still has big plans for the Vita, so meh... i can only imagine that type of comment comes from the lack of information on the situation.