But is it effecting the dedicated handheld market?  Mobile devices can be successful and still not effect the dedicated handheld market.  Does a person go to the store and say hey I want to buy a 3DS but change their mind and buy and iphone "for games" instead?  Or does people buy phones because it is a part of modern society and then buy games on that device just because they can?  And hey why not it is cheap.

Im fine if you explain your opinion on it, im not trying to be disrespectful or anything :)  Look at this as trying to convince me on something, not an argument.

Well in my case is true. I've owned all Sony Consoles, plus I've owned: Gameboy, Gameboy Advance, DS and PSP. Now I don't own any portable console and I won't ever own another one. Home consoles are enough for my hardcore playing time, and with my ipad and ipod I take care of my "in-the-go playing needs".

Just market the fucking thing properly, North America!

QFT,

Games like R&C into the nexus,puppetear,rain,dragon's crown etc would have established this year for the vita if they were exclusive to it,but Sony had to give priority for its home console.

They will NEVER support their portables the same as their consoles.

imo psvita games are top notch, but i have to admit it, most times while playing i was thinking "these games are more suited for a big console".

Not just that. All these games should be exclusive on Vita (except Dragon's Crown, which is 3rd party, so Sony can't say a thing about it), but I believe every single 2013 PS3 game should be Vita exclusive. This includes Beyond: Two Souls (it would work much better with touch controls!), The Last of Us (finally a massive system seller), Ni No Kuni and Gran Turismo 6. These games would move millions of Vitas, instead they help PS3 fight the X360... As if that fight mattered at all at this point. Just one year with full Vita focus and there would be enough Vitas out there to make it a market in which 3rd parties can safely earn money. Considering development for Vita is cheaper than for PS3 and that development for PS4 is much more expensive, Vita would have a secure future, cause devs could earn money there without risking a massive PS4 level budget. It would cause a snowball effect for years to come and generate huge incomes in the long run. Instead Sony decided to be as shortsighted as they could and now is surprised that a console with the worst 1st party support in history isn't setting the world on fire and decide to just put the blame on mobiles. Cool story.

Coz we need them games!!!

You need those system selles on the Vita. More games that are Vita exclusive rather than ports.

That applies for any game system. We buy game systems because we want to play the games.

Sony needs games that you can only get on the Vita. If you're going to ripoff Super Smash Bros, though poorly, why not ripoff Pokemon, and make it good? Put a good first party monster collecting adventure game on Vita.

The smartphone market hurts the dedicated handheld market, yes, but 3DS shows that both markets can coexist. 3DS will probably end up somewhere around GBA/PSP numbers. Basically we'll be reverting from the ridiculously large market of DS/PSP (DS appealing to people that would have never buyed a dedicated handheld before (e.g. my parents/grandparents, who have moved on to smartphones and tablets) and PSP appealing to people that want all sorts of entertainment on to go as opposed to just playing games) to the more normal GBA times.
The way I see it, almost nobody buys a smartphone because it plays cool games. They buy them for their multimedia features and to communicate with other people. And while they're at it, why not play some games on the phone.
My parents, for example, never really played videogames (aside from a couple rounds of Mario Kart with me and my brother or some Brain Age on the DS). They do on their smartphones, but only because there are games available for free anyway. It's just a side effect of owning a phone. See, I own an android smartphone and I also own some games for it, but I'd never pay for any game on that thing nor do I play all that much. From my experience, that's how it's for most people.
We only see a shrinking handheld market right now because last generation had a huge appeal on people that would have never thought about buying a gaming handheld. My parents would have never bought a GBA for themselves, or a GameBoy, or a SNK Neo Geo Pocket or what have you. We only feel that people like these have been lost by the handheld market because they were attracted by it last gen. Were the jump from Gen 6 to right now, we wouldn't even talk about smartphones influencing the dedicated handheld market.

That said, Sony could have easily pushed the Vita to numbers of around 30-40 million units sold would they have handled it correctly. Yes, compared to the PSP, Vita has a much harder time, but that doesn't justify the horrid sales up until now.

Complete bullshit. Vita failed for various reason's and they all have to do with SONY. I dont feel like ranting because I just woke up but Marketing, extremely small and wrong target audience and software are key areas.