Interesting but then I think it makes irrelevant the PSVita. Let's say in a couple of years we have PSvita:VitaTV in 1:2, the main platform will be Vita TV. I don't think it can encourage sales of the portable device, in any case, mostly VitaTV sales. Also I don't see either Sony making another portable console just to make a home version to save it. I think this might be the begining of Sony leaving the portable gaming market.
There was nothing the Vita was going to do that would get Sony to release a third dedicated gaming handheld. They were exiting that market after Vita regardless.
What VitaTV can do is increase the userbase of the Vita chipset, resulting in more Vita games period, and more money made by Sony and publishers on the format.
It also sets up as a fantastic box to Trojan horse Gaikai into homes with, and that is their real portable gaming angle beyond the Vita. By 2020 at the absolute latest Sony wants to be selling you streaming video games via your phone/tablet either how iTunes sells you movies, shows, and music or how Netflix offers subscription based bulk packages (likely a combination of the two, if PS+ is anything to go by). They don't need a dedicated handheld for that as phones and tablets powerful enough to link with Gaikai will be quite cheap by then. We're on the verge of dedicated handheld hardware becoming a thing of the past and VitaTV is Sony's first big move to acknowledge and plan for that eventuality.
Vita TV is a good idea and it does shit on the 2DS but guess which one will light the world on fire? (hint, not Vita TV)
If 3DS sales are anything to go by not 2DS either, since the 3DS itself is well off the NDS' pace despite strong Japanese sales (where smartphones are really just starting to pick up steam mind you). Handhelds are dying outside of Japan. Kids would rather have a Kindle or Nexus than a 2DS, and the price gap isn't big enough to matter.
Hold up...
So with this I can stream PS4 content to another TV?!?!?
Holy shit. I have 2 PS4 preorders one for my basement and another for the family room. Did Sony just save me 300 bucks?
Yes, that's the whole point.
Why would you even want to play handheld games on a tv? Serious question. I just don't get it. That's what a home console is for. Except home console games are generally better and are actually made with the tv in mind. Handheld games are best played on a handheld. To play them on a tv is just underwhelming to me. I mean there's a reason Liberty City Stories on PSP was the shit and Liberty City Stories on PS2 just felt like shit. I just don't get the appeal. I understand people getting excited over the remote play stuff of being able to stream the PS4 to a different tv. But the playing handheld games on a tv part just confuses me. I don't understand the appeal. I really hope this takes off and you get what you want out of the device, but I just don't understand what it is you're enjoying.
Well, remote play is a big part of it's appeal.
But as for the handheld games, the entire point of the Vita is that it's the first handheld that doesn't have to compromise gameplay. Killzone: Mercenary is an excellent FPS regardless of format. Soul Sacrifice is a good game no matter what you play it on. Guacamelee! is too, and many people on GAF played that on their PS3 (judging by how many people used the "LOLZ, I play all these great Vita games on my PS3, cross play kills Vita!" arguments). There are also tons of indie/small studio titles that work great on the Vita and have zero handheld handicaps. Lastly, JRPGs are basically a dead genre on big consoles but the PS1 and PSP have awesome back catalogs of them and the Vita has some solid entries itself.
It checks a lot of boxes and for only $100 while a dedicated console might not check all those same boxes and costs $400. That plus remote play is your marketing angle here. A PS4 extender and small game player with added media playback value thrown in.