Without a doubt, if not higher. A 4G Vita would be able to make crystal clear voice calls over Skype or ooVoo. It could stream Netflix, Hulu, and PlayStation Video content anywhere. It would be fast enough to stream games over PlayStation Now, and Remote Play. It would basically be a smartphone for gamers.

I already use my 3G model in this fashion, and it as I said, is the best mobile device ever made. It is highly unfortunate that Sony failed to market it well, and launched it on AT&T during a time when they were having major network issues. A 4G Vita right now with the strength of PlayStation Network would be anawesome device. I would love to see a Vita 3000 with 4G. With it Sony could start building a great foundation for the Vita's successor, at which point they can start going after android, ios, and windows phone.

Dude... Just stop.

While I don't think it would have been as successful as you think, I agree that Sony should merge Xperia into Playstation. 

First of all, Playstation is a more recognized brand than Xperia is nowadays. Everyone knows what PS4 is, but they're clueless about Xperia. A PlayStation Phone would increase their profit margins on the Mobile side. The real problem is whether or not they should ditch Android. While Android is and will continue to be the king of the phone market (and Apple the court jester who thinks he's king), there have already been issues with the open OS on Sony phones, namely the hacking of the Remote Play App. This was supposed to be a major part of the Xperia phones, but now any Android can do it. Not only that, but Remote Play doesn't sync very well on Android, and the Playstation App is a lackluster program that operates through a Web browser. 

If Sony made a PlayStation Phone, it would have to be on a new OS made specifically for Sony Phones and tablets. This proposed OS would have the Playstation Store built into it the same way Google Play is built into Android. It would also have more direct access to your Playstation Network account, syncing it to your phone like Gmail accounts on Android. The device would be capable of better Remote Play stability, and could also spark a resurgence in PlayStation Minis and PlayStation Mobile.

A newer OS that has fewer devices to accommodate, making it easier to develop Apps for (like the iPhone). All future Sony handhelds could use this OS, including phones, tablets, and the next Vita (or maybe even the current Vita). With the right pricing (Sony's greatest weakness), it could be mildly successful and spur more sales in both sections of the company. Those who buy these new Playstation Phones would be encouraged to buy PS4 to anything else, and PS4 owners would just be making bad life decisions not to invest in one as their next phone. 

Handhelds and smartphones are two different markets and cater to two completely different needs. An overwhelming majority of people buy phones for communication first and foremost, not to play games. A handheld only really has one function which is playing video games with the games costing about $40 a pop and for many people they can't justify buying a device that costs anywhere from $200 to $250 solely for one purpose (they don't hold it to that much value). Whereas a phone can be purchased for much cheaper and is an incredibly useful tool with the added value of being used for entertainment for free without much hassle. The only reason people game on a phone is because the games are so easily accesible and incredibly cheap with most of them being "free." If in order to play games on your phone you would have to buy a special add-on that costs anywhere fron $50 to $100 and the games not being free but costing about $20 or $40 each I'm pretty sure you would see a huge drop in the number of people playing games on their phones. People primarily buy handhelds to game, people primarily buy smartphones to communicate.

With that being said I do however think that smartphones are partly to blame for the decrease in handheld sales overall, but only due to it shifting the mindset of consumers by putting more value onto their electronic devices. Because before Smartphones we really didn't have anything that could "do-it-all" so to speak now a smartphone can take care of anything from listening to music to communicating with friends/family to watching movies. And now having just one electronic device that can only do one thing which is gamimg is kinda drab nowadays and doesn't have as big of a mass appeal, it just doesn't hold as much value in todays society compared to the past.

tl;dr I don't really think it's smartphones that are the reason for handhelds dying per se, I just think it boils down to convenience, price, and the value consumers deem a device to be.

Everything you said is spot on. PlayStation is Sony's strongest brand. PlayStation Network is their delivery platform for the future. Android on Xperia has been a mess, and things are not getting any better. 

The only way Sony can set themselves up to continue to succeed in the future is to bring their mobile and home platforms together. Building a PlayStation Mobile OS, will put them in control of the platform, and make sure they avoid another Vaio situation. It will strengthen booth PlayStation Home Consoles, and PlayStation's Mobile consoles beyond where PS4 and Xperia can take them. In doing this, Sony will strengthen their position in Home & Mobile computing, and have a shot at reaching the market cap levels of Google, Apple, and Microsoft.

 What is in it for us, is we will have a company, and products that are built from the ground up with games at the forefront. In my eyes a world where elctronics are built for games first is heaven on earth. The best part is, if a system can run games, then it is more than capable of everything else, and that raises the technical bar, meaning better games and apps for everyone.

Stop what? 

I want a better future for mobile. I don't care if it's Sony, Nintendo, or the new Steam handheld that brings it, but I know it can be done. The bar is extreamly low right now in the mobile world, and it is just waiting for someone to make a move. I think Sony has all the tech to do things right, and I would love to see them exicute on it. 

Gaming on the go is not dead. Handhelds have failed to evolve with the times, and that is why we see the numbers in your OP. With what I am talking about, Sony and Nintendo could return and be stronger than they ever were. Handhelds can replace smartphones, and one day they will. Flat slabs of usless glass are not going to rule forever.

Pokemon happened in the late 90s, and that altered Nintendo's handheld sales. 

But we see that with the Game Boy COLOR already, and new average of 6-8 million Nintendo handhelds a year in the US by your own chart is basically the norm until the 3DS comes around and it goes much lower than that from there on. 

So the 3DS is the odd one out, not the GBA, GBA just carried on more or less the sales average the GBC had established for two years prior. 

Also with regards to a Playstation "phone" that runs a non-Android OS ... lol, good luck. The world isn't 17-year-old male gamers.

No one is going to buy a phone with a niche Playstation OS that has little/no app support, people aren't even willing to buy Windows phones, and Windows is an actual OS giant, yet it still can't gain any traction in the smartphone business.

What does Windows phone bring that is any different than Android or iOS though? That is the problem as far as I can tell. Microsoft would have been better off targeting the Xbox crowd with an Xbox Phone, and brought Halo, Gears, and Forza with physical controls. This kind of device would have sold. Add in the ability to game on XBL, and they would have sold like gangbusters.

There is a huge market for people to play Call of Duty on their phones. Hell, if Sony or MS made a real gaming phone, and had a real COD, and online over 4G, it would probably put consoles in the same place in the west as they are in Japan.

 People are already watching Netflix, Hulu, WWE Network, MLB At Bat, etc. on their phones more than on PCs, TVs or Consoles. The only reason Gaming is not happening, is because you can not game on an iPhone or a Galaxy Phone.

For anyone to make waves in mobile they have to rock the boat. This is why Sony has to merge Xperia into PlayStation and make PlayStation Mobiles on a PlayStation OS. It is also why Microsoft has to lean on Xbox, and not Windows if they want to succeed. Apple and Samsung already own the market for this type of device, and Sony nor Microsoft are going to gain any ground playing me too. They have to bring devices to the market that take advantage of the one thing they have over everyone else. GAMES!!!

Some people are so out of touch with the market it's just baffling, this is an absolutely horrible idea.

The last thing Sony should consider is making another damn handheld.

Oh and your other posts in this thread are just...jesus christ...stop connection your own desire to what the market as a whole wants, you are obviously an outlier. Handhelds are not the future, handhelds will be entirely obsolete in the not too distant future.