The only thing they can do is release software. But they don't even have a single one to even announce until May and who knows when it will release...
Sony have to just relaunch, hold back on releases and pay developers to develop. Then launch around one date.
I just think they will have difficulty otherwise. A price drop might work (but is it viable business wise?), but if done right now, they don't have games that will sell the system anyway. So it means they can't just up-production and use economies of scale to sell cheaper - instead they are basically selling current stock atm...
If they do a price drop AND a relaunch...it might work - it won't be huge, but I think over its life time the system will do 'decent'.
Alternatively they could launch another redesign on the PSP and focus on it. Dropping the Vita unceremoniously (what will that do to customer loyalty I wonder? Maybe they can over freebies? (but it won't really be able to make up the loss to the customers)) might just be the best thing to do. PSP is selling well, it could probably do with a strong up-date.
Maybe begin a transition from UMD's to the new Vita card with a PSP that runs both devices, then make all new PSP games sell only with the new device (forcing customers to chose to update or leave PSP - its risky, but in the long term were talking about Sony disappearing for a generation if they don't act now - the customers/companies will leave eventually).
At least this way they can build up a customer base for the cards and maybe look back to the Vita project in the future?
IDK, I just think its not a simple fix, and none of the fixes above are simple. One is a relaunch that might fail, making the problem worse as public perception of the product worsens, one is a 'walk away' move that will hang out a lot of customers (right sure the fan boys will find excuses, but a lot of people will think twice about any future Sony handheld, or console) or do what they should have done and started moving the PSP forward.
Am one to think Sony/Microsoft should not launch entirely new consoles soon, but update there current ones (almost Gameboy>Gameboy Colour) - big changes to how they work and maybe upgrade certain games on the system, but no drastic change (the economy is not for a new system I believe, but we've seen with Kinect it is there for 'updates' to current systems)
So I think they should have done this with Vita originally. I don't think its too late now, and there is a chance they'll be able to run two markets - a higher and lower model - over a long period of time, and eventually Vita might do okay.
/rant