I actually miss 3D when I play on Vita. And the proprietary card is stupid. Otherwise the hardware is perfect.

I love the Vita as it is, but I agree with the SD card and the L2/R2 buttons.

The most important thing? Call it Playstation Portable 2! I'm sick of people still not knowing what the Vita is. "What's that?"-"The Playstation Vita"-"What?"-"The newest Playstation Portable..." - "Oh, didn't know it existed, seems cool!"

A little smaller than the WiiU gamepad, and much more sleeker. Full console dualshock controller buttons; PS3/PS4 inputs.

It would play PS1 classics, PS2 classics, PSP digital, PS Now, PS Vita cartridge/digital, and full off screen play (like WiiU gamepad/better than remote play) with PS4. If possible, PS3 too.

480p 6 inch cheap display.

16gb internal flash storage. Expandable with Vita memory cards.

ARM SoC capable enough to run the emulation for all the platforms above and be able to stream the image from the PS4 and possibly PS3. Reprice digital games: PS1 - $5/8, PS2/PSP - $10, PSV - $15/20. Perhaps lock prices to this device only.

Sounds a lot like a redesigned Vita suited more to be a PS4/PS3 companion device. PS5/future stream ready.

$200 since it has it's own hardware to run games.

It has games.

PS Vita is really a great handheld and almost perfect, but your features would make the PS Vita perfect imo. :)

In my opinion.
Its already here ; and on the market.
Right now.

http://www.sonymobile.com/global-en/apps-services/remote-play/

Use standard SDHC flash cards
Use Dual Shock3/4
Can play Local or Streamed Games from the PS4
And when you upgrade phones can access back catalog.
Has emulator's
Able to play 100's of thousands of games already
Has physical controls just like a living room console
And already is a Phone also.

With this mount , you pretty much have a playstation Portable on any Android Smartphone.

http://www.sonymobile.com/global-en/products/accessories/game-control-mount-gcm10/

Killer App is catalog!

Android games

Remote play

Playstation Now

Some PlayStation Mobile

And catalogue of Apps already set to go day one on the device by Android App store & Games

IMO it should basically be a scaled down PS4, using an AMD APU with around 1/10th the performance of PS4's processor, definitely possible with the latest AMD mobile processing tech to run on a mobile battery.
1GB unified memory at 30-40GB/s would be more than ample.

Memory storage built in, if an iPod classic can have a 120GB HDD then a modern handheld console should be able to as well, failing that 32-64GBs of solid state storage.
For the controller it should have the same button layout, analog sticks, D-Pad and Triggers as the Dualshock 4, only instead of the touchpad the touchscreen in it's place.

The system should have 2 SD Card ports, one for games, the other for extra storage.
There should also be a HDMI port (micro, with a micro to big HDMI cable in the box) for streaming gameplay.
Latest USB port for charging and physical data transfer.

Direct bluetooth or faster data streaming to allow for streaming second screen PS3, PS4 and PS5 gameplay and playing all of those games mobile on the unit (simple Wifi feature too for when you're away from your consoles).
Should use a version of PS4's OS and API, so developers can easily scale their game engines to run on the system.

System should have full support from AAA 1st party developers and studios external to Sony.

Vita with SD cards
I guess shoulder buttons wouldn't hurt..mostly for remote play though

Vita's perfect with the rest

Sized like the xperia-play but being a vita which has the ability to phone

Vita is already the best Smartphone/Mobile device on the market. It does however, have some things that could be updated. If I was to start from scratch;

First and foremost, Sony Mobile Communications would have to be rolled into Sony Computer Entertainment.

The next PlayStation handheld would be part of the PlayStation OS family of products. This would include PlayStation 4, PlayStation Vita 2, PlayStation Phone, PlayStation Tablet, Bravia Televisions, Sony Surrond Sound Recivers, Sony Blu-ray/Home Entertainment Devices, and Sony Cameras.

All Sony devices would communicate in harmony under this unified OS. Sony's cross platform development tools would allow devs to release apps across all devices with ease. Cross buy would be the norm for all purchases within the PlayStation Ecosystem. The most popular apps and apps from legitimate developers on me too OS, and A-os would be ported to the ecosystem over time.

The PlayStation Phone would come in multiple form factors. The current slab phones would be available for those that are not looking for a gaming phone. That would be accompanied by the Vita's successor.

PlayStation Vita 2

Hardware

-Vita 2 would feature a Phone model (Simply Called PlayStation Phone) with 4G LTE, a 4G LTE model without cell service, and a Wifi only model
-Phone and 4G models available on AT&T, Verizon, and T-Mobile
-Built in storage, 16GB, 32GB, 64GB, and 128GB
-APU would be a mobilized version of the PS4 APU with 4 CPU Cores, and 10 active GPU cores
-4GB of GDDR5
-Vita Memory Card 2.0 (32GB, 64GB, 128GB, 256GB)
-12MP Rear Cam, and 8MP Front Cam, both capable of 120FPS capture
-USB Type-C port, HDMI Mini Port, 3.5mm Headphone Jack, Vita Memory 2.0 Slot
-Feature the same button layout as PS Vita, except include clickable sticks, and L1 and R1 and ability to set R1 as a quick pick button.
-5in 720p LED with multitouch, 5in rear multitouch pad
-Bluetooth and NFC

Pricing Lineup

Wifi Only
-16GB $199, 64GB $299

Wifi + 4G
-32GB $299, 64GB $399

Phone + 4G + Wifi
-32GB $399 (Zero Down on Contract), 64GB $499 ($50 down on Contract), 128GB $599 ($100 down with Contract)

Vita Memory 2.0
-32GB $19.99, 64GB $49.99, 128GB $79.99, 256GB $119.99


Games and Apps

It would launch with support for all previous PSP and PS Vita games, as well as Sony Mobile Communications app and products. The SCEWWS killer apps would be Gran Turismo 7, The Last of Us 2, New Ip from Sony Bend, and New IP from Sucker Punch. 3rd party launch titles would be COD AW2, GTA6, Assasins Creed, and the rest of the yearly titles. All PS4 games would be playable on the device, at 720p/30fps, some would become available instantly if you already on them digitaly, others would be re-released for Vita 2.0 @ $29.99.