Vita sales have already collapsed.
I expected the system to flop in the long run, but I thought it would atleast get off to a better start in Japan, where the PSP has found success in recent years. Honestly shocking figures for a brand new console launched in the Holiday season.
The worrying thing for Sony is they really don't have much room to maneuver on pricing the Vita. Nintendo could afford to significantly drop the 3DS price because they were frankly ripping off consumers with the original price point. The 3DS had a huge profit margin for Nintendo at the original price point. But Sony is already selling the Vita at a loss.
They have to drop the price of those ridiculous memory cards though. That's clearly where they're trying to make their money.