I don't understand why the calls for Nintendo to drop out of the hardware market as well. Just because they make a hardware item that doesn't sell well doesn't mean the end is nigh for them. If that was the case they should've stopped after the virtual boy!
Indeed Sony needs to do more on their handheld market if they want to keep going on. I even heard word that the vita TV back in Japan was a dud for Sony. I considered buying a Xperia Play but when I held it, it just didn't transission well for gaming. It looked well for a phone but most of the games made for it were not exactly compatible with the PSN or even playstation games in general.
The Vita does have some good gems in their corner but for me it hasn't been enough for me to take the plunge, even with the newer vita coming out that's cheaper but at the cost of the OLED screen. So far I'm still enjoying my PSP and with enough memory and a better battery AND the option of either DLing titles or buying them on the cheap on UMD, the vita needs to help make those great games that the PSP had instead of what they got right now. Plus having a consistant load rate between games woudln't hurt.