Thunder Monkey
Banned
I don't think there's anything they could have done. The market changed underneath everyone. No amount of action was going to change that. Nintendo should be the perfect example of that. Huge moves along the way to end up with a system that will lose 90 million units of their prior gen hardware sales.Sony moved 70 million PSPs, more then any handheld rival ever had. Vita, at first, seemed posed to fix every issue players had with the PSP.
It's just, well, Sony fubared the prices. $250 was great when the 3ds was 250 and tablets started around $500.
Not so much when the 3ds was $170, tablets were starting to show at 199, and the vita required $20-100 memory cards to function.
Player interest died pre launch. Devs fled form the thing (save for indies in the west, and select japanese devs in the east). Sony sat on this for years before doing anything, and still hasn't fixed many of the issues.
It was hardly DOA, not until sony just sent it to die by not reacting/bad decisions.
Sony could have reacted, but you're fooling yourself if you think it would have amounted to anything. By the time they launched Nintendo was already filling the dedicated handheld niche the market now is.