The thing is Vita TV is still missing its killer app. Playstation Vue is going to do wonders for the device. Most people will not get PS4 for the kitchen, or the garage, or in some cases kids rooms or master bedrooms. This is were an $80 or less PSTV will shine.

On the 3rd party front, Sony has not done anything to show they are going to grow the user base. Launching a PS Phone across all carriers would give devs and publishers a huge reason to consider the device just based on the potential. If sales take off like thy should Sony and 3rd parties would jump on just like has happened with android and iOS.10M is not enough to take a risk on. 60M or more is a definite return on investment. 

60 m is crazy i doubt it would even sell 10 millions that vita phone

First, let's look at when the PS Vita released and the circumstances surrounding it. Sony's biggest competitor, Nintendo, was struggling mightily with the 3DS. As a matter of fact, during the first few months of the 3DS's life, multiple publications (most notably IGN, and their now notorious "why the 3DS failed and the Vita is set to succeed" article) had proclaimed the PS Vita as the first handheld to overthrow Nintendo. Sony had everyone's attention, the press was theirs, people were not buying the, at the time, overpriced 3DS, and they had massive momentum from the major late life success of the PS3 (something the Wii sorely lacked). In my opinion, all Sony had to do was to price the system right, include a few great launch titles, and keep a steady stream of titles going. In a perfect world for Sony, they did that and now have marketshare close o that of the 3DS. But this isn't Sony's perfect world. It was Nintendo who did all of that, while Sony made the original launch price of the 3DS look like peanuts compared to that of the Vita and it's horrid memory cards.

Simply put, it wasn't about who they targeted, they simply failed to take advantage of any of the opportunities afforded to it. Launching a system at $250, and that without an essential memory card - which would raise costs to as much as $350 without even a game, cost them dearly. They never really recovered from that, and unlike Nintendo, didn't have the Pokemon's and Mario's to fall back on.

It's funny to think, Sony had an advantage no other company had before, Nintendo was, for the first time, actually struggling with their handheld, the market was wide open and Sony blew it. All they had to do was launch the Vita at $170 with a game and memory card included, and we would see a much more competitive market today. Instead, they chose to do what Sony does best: overprice the crap out of everything. And as we all know, Nintendo did what Sony didn't, and the sales speak or themselves.

Just my 2 cents on the matter. And with that, go Nintendo!

PS: to anyone even thinking about suggesting a phone/Vita hybrid, they already tried that and failed.... miserably. It didn't work then, and it sure as heck won't work now.

*Sigh* I'm kind of new around these parts, and didn't realize I was being "taken in". I just did a "massive" (okay, it wasn't THAT much) write up, thinking this was a seroius thread. That RolStoppable, I'll have to watch out for that character lol.

Hahaha, that's really funny! I've never seen a thread like this before! I hope we get to ban someone who flew into the trap and then have long discussions in the mod thread with the OP about other users' bait topics!

Casual is not a loyalist consumer,  they easy to persuade and don't understand about core product. What happen to Wii U is the same with  Vita, They did failed on positioning their product, and the consumer already attract to real tablet rather then Wii U tablet, and also casual gamer spend money less then core gamer and they don't see any useful meaning buying another tablet (Wii U) for the sake of gaming only.

That how funny thing is while Nintendo having difficulty positioning their console on market, SONY having difficulty positioning their handled on the market and both come from Japanese corporation.