Answering to the question, I can say it's a big "if". Just selling badly on a gen won't necessary make a company quit. Sega didn't quit after Saturn, MS didn't quit after XBox, Ninty didn't quit after GC. I honestly thought they would do a phone/handheld hybrid again, but the rumour of the Xperia division sale really gave me some doubts.

In a way, I think they would quit: they are way more successful in home consoles and handhelds are a market that can die soon. But if they are trimming the company around the PS division, would it make sense if they trimmed an entire line of products in their core division? Would the Xperia sale mean that they will still make the phone hybrid but since PS division will make it they don't need Xperia.

I was betting on the phone hybrid because it could do some good numbers. Vita, troubled as it is, probably sold more than their last high-end phones did in the last 3 years combined. So it could go either way right now and we probably won't know before 2019/20.

Edit: my biggest concern with the "phone streaming" thing it that it doesn't look much feasible. It will only work on wi-fi. It won't work on the go with 4G connections. It's not video streaming where you have a buffer. And most people have data caps. I don't see the utility of having streaming if it will only work where you have wi-fi available.

The PS360 versions are from Capcom. There were no plans for a Next Gen version of USF4 until Sony started their partnership with Capcom.  USF4 is not on the Xbox One.

It seems the Vita is getting more exclusives in 2015, then it got in 2014 and 2013. Sure not from 1st party or western devs but third party support is increasing and the exclusives are getting bigger in japan, sales ratio's are improving between it and PS3 cross gen titles and I see this all being a continued pattern. All of this bodes well for the future and of course its not gonna touch PSP levels of success but the if the big Japanese devs get behind it that will reflect in western sales. Also we shouldn't undermine JRPGs as if they don't sell systems, they surely do when they are good quality and big. So far the Vita has only had 2 that I would say fit that category; Persona 4 and Final Fantasy XHD. Both were ports yet sold very well and shifted systems.

Also the Vita will likely be here longer then the Wii U. Key being 3rd parties make money of it and its sales in Japan, it doesn't recieve the holiday boost but the majority of the year Vita has a higher baseline and hardware is probably more profitable then the Wii U. Nintendo also have a very strong history of dropping support for systems like a rock when they have a new system out, as we saw with the PSP/PS3/360 3rd parties are so quick to do so.

It could go either way. I believe Sony can turn the Vita around if they really wanted to but it might not be worth it to them.

Vita is powerful enough to last for a few more years anyway so it could pull a Gamrboy and stay for 2 gens.

I don't think sony are in a hurry to make another handheld. Whether they did will probably be dependent on how much profit/if any the Vita provides them. It could be we all really under/overestimate the resources into releasing a new handheld. It could be that a new PSP which sells at profit with japanese support on board is a safer bet then most of their mobile division lol.

The Vita is proficient enough to last 2 gens anyway, If they get it close to $99 (japanese equivalent) price point before Nintendo's next console, they could really turn things round. The big question is will the software support be there? I think by the end of this year, the systems future will be much clearer.

In Japan software support is getting a lot better

1. Vita is 100% undertracked in VGChartz and there are a lot of proofs for this.
2. How do you know the Wii U will be longer supported than the Vita? 
3. Wii U has 0% Third-Party Support, Vita has at least ports from good games!
4. And Vita is still getting exclusive games in 2015, Grim Fandango, J-Stars, One Piece Pirate Warriors 3 etc. are all Playstation/console exclusive! Vita owners are happy!

1st party means developed in house by sony devs, those don't fit the bill lol

NO! Especially how their Phones aren't selling close to how their competitors is doing.
And their not even doing THEIR BEST with the handheld. .

Since the Vita did so poorly I feel that they won't. If they make decide to make another one I hope that they learned not to stop supporting it halfway through it's life cycle.

My fault, edit it.