I really think there was nothing they could do to make the vita a hit. 3DS had problems too.
They wer both buggy whipped by mobile devices.
They better hope that the trends which made vita such a hard sell don't impact consoles too. Besides mobile devices, they have to contend with cheap set top boxes -- in the past year, they said more XBL members were watching Netflix than playing games?
Well, the challenges are real, but it does not mean the console vendors can't have a breakthrough in user and gaming experience.
I mentioned before that my lifestyle has become more mobile oriented. My iPad mini is the center of my digital lifestyle. Home consoles are more like docks to me these days. I expect the vendors to offer a significantly different gaming experience next gen.
After leaving the console scene for 6 months, I think many games are over-priced. So they definitely need to rework the pricing model to be competitive with iOS game pricing. The games may be long, but they should be designed to be playable on the go (i.e., short session).
Something like PS+ is also a good start to build gamer loyalty and values. I think it's a good way to counter used game sales instead of relying on DRM solely. Sony may need DRM for PS+ to enforce one-off, non-transferable deals.
As for the games, the iOS games are designed to be addictive. They are often tweaked to extract money from the users. If I pay for the games upfront, the designers should optimize the games to save my time. ^_^ e.g., I don't want to wait 1 day for a Townhall upgrade, I want it done in 5 seconds.
I think the console games also need to be Internet savvy, not just network oriented, to stay relevant. In addition to virtual texturing of 3D world, the developers should also look into using Internet "assets" like OpenStreetMap for game maps (e.g., Gran Turismo). Or even a web page layout for gaming (like TheLastGuy). Apple stocks and forum sites can all be used for gaming. The designers will have to study and tweak these "assets" for gaming use. Playstation Home explored a few of these ideas but they were too crude (due to limited memory) and not-so-fun. Incidentally, that Omni viewer concept will also be more intriguing with Internet integration.
There are new challenges introduced by mobile devices but at this moment, I see them as opportunities too. It's up to the platform holders, including Nintendo, to explore and decide what they want to do.