Catch up with what?  The Z phone has always been the best smartphone in that class.  T.V.s have also always been top notch.  Only thing they were really behind was with their music players.  But even then there isn't a music player that has the audio quality that the walkman do.  There's also issues with tech in general.  There's a reason why Samsung has to scale back their smartphones.  

Well what else that make gamer happy other then this news, imagine all the company resources and technology focusing on PS brand, that's mean the future is bright for PS brand as whole from video games innovation, gaming service, games development, and content.

So essentially one cancel's out the other, and makes almost no difference.

Why everyone try to ask Sony to support more on Vita (for AAA, they are supporting with indies and will do in future)? we know that Handheld market is dominated by Mobiles/Tablets now and its shrinking. Even nintendo has big decline and they survive only because of their IP's and sony dont have any IP's that is more suited to Handheld like a system seller. Even if they try to find one or two by riksing still its not enough as we need atleast 5 games a year like a system sellers from them to keep it afloat and 3rd party aleady abandoned handheld by moving to Mobiles. They are doing wise decision by focusing on Consoles which only can sell and give good profits with their network services of entertainment for home that will never disappear.

Catching up with everything. Were they first to make a smartphone? No, they were not. Sony started releasing great phones once the market became too competitive and Samsung and Apple had already become the dominant players in the phone industry. Had Sony released the Xperia Z phone in 2009 or 10, Xperia could have been as popular as the Galaxy S series phones from Samsung. I'm not saying Sony products aren't good quality, I'm saying that Sony is too late to develop products and this hurts them the most. 

I take it you don't want PS Vita 2 / PSP 2 / PS [Handheld 3 name].

Even more PlayStations 4? Over 162m confirmed.

Sony only wanted to develop quality products instead of quantity at first thats the problem. They realized and tried to provide more in the last two years but its too late and now they want to focus on only few quality products because Mobiles markets are saturated by many companies so samsung also have to cut down they mobiles for next year. I think sony is right on track now by getting the PS4 in many homes then providing on demand services through network in movies, TV, Music and Games through PS4(which will sell 100 million) so they can get huge users by asking users to subscript to their service. I think we might see huge push in Gaming from next year and its going to be PS2 level.

I wish but there is no way its going to be supported by everyone like it was with PSP from 3rd parities now as they all getting used to Mobile markets because of its huge user base which is keep on increasing and low cost for development with F2P model. So, sony cant support Vita with AAA games because it needs development costs and time just like PS3 now as its close to HD and will be easily above HD in next handheld. I dont know how Nintendo can survive from this in future(their only hope is just IP's but that not gonna lost and provide profits in future) and their console market is already lost which is not possible to get it back as the future is more going towards online streaming in 5 years.

Quality vs. Quantity strategy, I think it makes a lot of sense to slim down a bit and focus on the divisions that really can define a future Sony!