[quote name='The Mana Knight']Let me explain a few things.
1. No pricecut coming anytime soon. Sony does lose a small amount of money on every hardware they sell and they are NOT doing that again (their CEO rather gain marketshare slower than put the company in a hole financially).
2. The launch lineup is NOT a big time selling line-up to the Japanese. Minna No Golf and Ridge Racer are no longer major sellers. Minna No Golf didn't sell all that great on PSP while Ridge Racer continues to decline. Uncharted is not a big seller for Japan. Disgaea 3 sold under 100k on PS3. The launch fighters haven't sold well on any platforms. The lineup does appeal to the west better. The first game that has a potential to sell over 100k does not come out until Jan. (Tales of Innocence R). The majority of devs have only had final Vita dev kits (according the the RR devs) since Spring 2011. Games are not going to come right away.
3. Sony themselves are NOT pricing the Vita right now at the mass market price to be eaten up right now, just like PS3. PS3 started off very slow in Japan and has done much better now. They fully understand that it's going to sell to a more limited audience early on. They expect Vita to sell more when $200, and way more when it reaches $150. PS3 didn't start selling very well until it hit the $300 pricetag. One reason Nintendo tends to have an easier time at launch (outside the 3DS) is because they price at (or very near) the mass market price. Sony never does that and never will.
4. While Christmas may not be widely celebrated in Japan like the US, there is a lot of gift giving to younger kids. The Wii/DS last year were selling worse than the PS3/PSP. When the Christmas Holiday came around, we would all of a sudden see Wii sell very well and DS beat out PSP at the end. That's pretty much why the Nintendo stuff is at the top of the charts (gift giving time). People are not going to buy a Vita for a young child.
5. Compared to the 3DS and a few other platforms at launch, people cannot buy a Vita just to play their UMD games. Keep in mind that digital sales in Japan have always been low (on reason PSGo sold very low there). People can't buy a Vita just to play their Monster Hunter 3 or FF Type-0 disc. The only way to play it is to download it. Therefore, the majority who are buying a Vita are either those buying it for JUST Vita games or the very small number of people who have a digital collection of PSP games.
6. Oh course the 3DS is going to have its best sales being Christmas, Mario Kart 7 + Super Mario Land 3D released (which sold a few million on DS in Japan alone). Monster Hunter 3G helps too. Once the Holiday season is over (in Jan.), it definitely will not sell anywhere near as high.
The difference between Nintendo and Sony when it came to their newest handheld launch, Nintendo decided to price high because the cost of technology was a bit higher than usual when they released a device (Nintendo will not sell handheld hardware at a loss). When Nintendo saw they were not meeting mass market sales early (which is rare for them on a handheld), they panicked and dropped the price. Sony actually knows that they are not reaching mass market sales now and isn't in a sudden hurry to do it now, especially when there isn't a wide selection of games the Japanese want. People should remember that back in 2008, MS dropped the price of the Xbox 360 while Sony left the PS3 at $400. They knew very well that MS may gain more marketshare by the lower price, but Sony wasn't dropping the price of PS3 because they could not afford to take more significant losses.[/QUOTE]
Your main point seems to be that Sony has positioned themselves with the Vita to be in it for the long haul with the expectation that there will be very slow early sales of the system. That's certainly a possible scenario and one that I'm willing to accept.
The only problem with that approach is that its a very precarious position for Sony to put themselves in from 2 standpoints; which would be developers and investors. Neither of those 2 groups are accustomed to this approach.
Investors can easily lose confidence; news reports like the one this thread is based on make them lose that confidence. If Sony is adopting the approach you've mentioned, they need to be more clear with investors about it because otherwise they're just gonna see another failed consumer device which Sony has spent (what I'd imagine) a boatload of money on already.
Developers are also a group that need to be confident in a system. Without developers feeling that there's a strong player base in a system, they're not gonna invest their resources in developing for a system. Thus, the problem spirals into less 3rd party support leading to less install base leading to even less 3rd party support. There doesn't seem to be any killer 3rd party games for the Vita on the horizon at this point, maybe Sony's gonna take the approach of going it alone in developing the major releases for the Vita, maybe not. At this point it seems like they'll need to be major advocates in developing for their system.
Overall, everything we're throwing about is pure conjecture at this point. The sales results from Japan could mean everything, or it could mean nothing, for the North American sales. The simple fact that they have dropped off almost completely in week 2 should, at the very least, cause some concern for Sony in spite of taking the approach you're advocating.