It's lacking games and that's absolutely its issue as people have said, but I wonder how much return for investment they'd have actually gotten by going in balls-deep with the Vita.

The market has changed. Anyone saying otherwise is... well, just choosing to ignore the state of the world nowadays. PSP released at a time when the PlayStation brand was at a high; it was a new, handheld device with multi-media capabilities at a time when phones were still lagging behind and it was pushing a new (eventually unsuccessful) media format. It was a big deal.

Over the years, Sony didn't really need to moneyhat exclusives - they came on their own; the device sold as something people carried around with them to also listen to music/watch films etc. Times have changed. A phone is that device now. And companies aren't going to make Vita games "just because" it's a new PlayStation handheld. They're barely staying alive on consoles which are selling much better than it.

So, if Sony had thrown everything they had at Vita, how much would it have sold? It'd still only be selling on Sony franchises. Western third parties clearly aren't interested in developing for the things. The larger eastern third parties pledged allegiance to 3DS in the year-long headstart that it got (and even then their support is negligible at best).

Vita is a flawed device. It's great for someone like me who appreciates the ability to play console quality games on the go and doesn't mind lugging an extra device around. I am very much part of a niche market. Sony realised - far too late - that kids were a better prospect of success in the west, but by then 3DS was dominating. No amount of God of Wars or Gran Turismos was going to substantially expand this niche. It'd increase, sure, but is increasing from ~ 7m sold to ~ 10m sold really worth the investment of all the titles they'd have had to throw at the device alone? I'm thinking not.

I wish it hadn't happened like this, but ultimately I can say that I at least understood what they did.

Still, I get a JRPG device which plays PS1 & PSP games with dual analogues and a gorgeous screen; along with 2 years worth of great first party games. I'm not unhappy; I just wished for a little more.

The concerning difference between them being that Nintendo have said that the problem is content, and that it's coming. Sony haven't recognised the problem and my guess is that they don't have any content coming to talk about.

I'm going to have to disagree with a lot of the games you listed.

Into the Nexus - Vita needs an exclusive R&C, absolutely, but ItN is not that game.  Giving people a trilogy of titles all with one connected story and then saying "but you're going to have to move over to our handheld to see the conclusion of the story" is rubbish; excused only if the console the games were originally on is dead.  Which PS3 is not.  Port it, fine, but don't make it exclusive.

Dragon's Crown - third party as you said.

Ni no Kuni - third party.  Barely came to the west as it is.  If Level-5 had made another handheld version of the game (remember, it already exists on DS), it would've been for 3DS where the child audience is.  Wouldn't have been a wise investment by Sony to moneyhat because why would they moneyhat an untested-in-the-west IP which had already released on two platforms in Japan?

The Last of Us - no.  They're trying to build it into a home console brand, that much is obvious.  Make handheld-tailored experiences for handhelds, not home console games.

Puppeteer and Rain should've been on Vita.  God of War: Ascension as well (retooled if it needs to be).  Beyond: Two Souls, ehh.  I'm a little tempted to agree with you there given how The Walking Dead works on Vita.

Gran Turismo 6 is a weird one.  The game that released - no.  That needed to be a PS4 game as a first choice.  I agree it shouldn't have been a PS3 game, but I think Vita would have to wait in line behind PS4 in terms of priority.  

They need to do what Nintendo did. Games, games, games!

If the device doesnt sell like hot cakes cause people actually have other options, you need to increase the value of your proposition. Its what Nintendo did with the 3DS and look at that! Theres no QQ about mobile devices there.

^This. TLOU on vita would've been a terrible waste unlike some people are suggesting on here. As for GT6, it would have been best served on PS4 not vita. I too will probably buy a vita when it's cheaper but it wouldn't be for vita games. It would be for PS1 and PSP games like this guy. I have a PSP that does that already but that thing is uncomfortable as hell and will give up soon.

I wonder how I feel as a vita owner if I read they basically they gave up it. Can see that's what he almost flat out saying.

It's both.  A must have Vita-tailored exclusive is sorily needed, but what the guy in the OP said is also true.  Mobile is crushing handhelds...

The Vita is amazing, and it has a tom of games. Ppl just dont want to buy it for whatever reason its not even trully expensive. I think its a machine that catters too much to hardcore gamers, the more casual gamers got 3DSs and those are by far the majority.

Sony just needs the right game.

I am at work right now. In my bag is a laptop, a 3DS with maybe a dozen games (over 50 if you count digital Nes,eShop, Ambassador etc.), a Vita with 15 games (again, over 50 if you count the downloads from PSP and PS1 and PSN). I bought four in the last week! Plus, I have my phone. I should be left to my own devices for the next ten hours. perfect time to get some gaming done....but I'm probably just gonna watch DBZ on my laptop and post on VGChartz.

This is the world we live in. This coming from a Vita owner and a serious gamer. If I do decide to play something, it's gonna be on the 3DS. Vita just doesn't stand a chance.