They can:
- Adopt a standard Micro-SD slot instead of their stupid and über-expensive memory cards that no one uses for anything other than a Vita (at least the memorystick was used in their feature-phones and cameras).
- Lose the game cards slot as they did with the PSP Go and make it a download-only handheld. They could let the retailers sell game-keys in order to avoid some serious backlashes.
- Shrink the SoC and maybe put all the RAM in the same chip too, making the PCB a bit simpler (there's a Toshiba RAM chip in it).
- Build a smaller version with a smaller non-OLED screen (4.3/4.5" 960*540 IPS screens are so widespread they can be really cheap nowadays.
- Cut on all the (gorilla?) glass that surrounds the console except for the front screen. There goes the "premium feeling" but it's the same cost-saving + higher-volume as we saw in the PS2 and PS3 iterations.
- Looking at the
ifixit teardown, we can see they're using no less than 5 different chips for baseband amplifying (mainly because the same 3G model supports both CDMA and GSM). Aren't there single-chip solutions for that?
- The same teardown shows different chips for 3-axis accelerometer and gyroscope. I'm sure a single MEMS that does both could be bought for cheap today.
What I think they should do is build a Xperia Playstation. An Android smartphone that doubles as a Vita. Maybe make detachable controls to put on the sides of the phone when it's in landscape or such.