And OP - While developers can set their own prices, reducing the price does not reduce the amount they pay to Nintendo, so the only option is to increase the price beyond what it would normally have been, if they want to boost the income for that title, the obvious drawback here is that it's significantly higher in price than on competing platforms, and indeed, other software released by larger publishers who can take the hit in royalties, as such their only option is to take the hit and hope it sells enough to offset the fees associated with it.

This however, is not an option for many smaller developers.

There are less financial burdens, less red tape and less risk with releasing games on the Vita, PSP, PS3 and PS4, thats why, despite OPs logic, third parties still support the Vita as well as the 3DS, and in some cases, the Vita instead of the 3DS.

Look at Hyper Light Drifter, the developers first console to be supported in their kickstarter was the PS3 and Vita, it was only after heavy funding that they made WiiU a stretch goal, 3DS never even made the cut until long after the Kickstarter ended and they had received funding from elsewhere too, and even then, 3DS is on their "potentially" list, last time i checked, and not their "definitely" list.

Like I said before, I can't really comment on this. All I can say is that it's pretty stupid of Nintendo to have such high royalties if it's true.

Well, actually your thread proves that 3rd party perform better on PSV. The combined sum of 3DS 3rd party titles is a little more than 2 times the Vita result on a console with 6 times the installed base. About developing games for them, I only see a viable alternative in doing simple games that are cheaper to develop to get money with those numbers.

Why else would many third parties avoid it when all other logic would suggest its a good idea?

Ehh, there's something to be said for the lack of competition on the Vita. Publishers don't have to worry about competing with the likes of Monster Hunter, Dragon Quest, and first-party Nintendo games... come to think of it, they don't have to worry about competing with Sony's first-party games, either.

I don't understand how 0.30m > 0.64m... That's btw the lowest selling numbers on the Vita's top 10 vs 3DS's top 11. The 3DS has 47 games developed by 3rd parties that's sold 0.30m or more, where the Vita only has... well, 10, such titles.

Yeah, it WILL be very interesting to see future multiplat (Vita/3DS) games, and how those will pan out once the Vita gets more of an instal base. I wonder what it will take for Rockstar, Bethesda and the likes to actually develop for the Vita (and I'm even MORE curious what'll take for them to do a 3DS game).

3rd parties would benefit long term IF the Vita actually takes off. After 2 years on the market, I'm starting to doubt it'll ever will...