I really don't get how these 1st party devs could squander resources like this. I mean third party titles are out there at full native rez + AA that look quite good.
In fact Dynasty Warriors comes to mind (strange as that may sound).
Not impressed with Zipper and co..
Did they squander resources though? And what third party titles are you talking about exactly?
Dynasty Warriors? There's exactly one detailed thing the game engine has to render in that game, and that's your character. The environments are devoid of almost any features or visual flourishes whatsoever, and the clone army of enemies (who usually materialize out of thin air right in front of you) are both incredibly low poly and painted with flat looking, low resolution texture maps. It almost gets away with it because the chaotic nature of the gameplay makes it very hard to focus on the details, but once you do, the game kinda looks like ass.
Shinobido doesn't look very good either, and Ninja Gaiden Sigma looks like an old Xbox game while running at half of the original's framerate. Katamari looks, well, like a Katamari game. For better or worse.
I haven't actually seen or played Unit 13 (the game practically screams "avoid at all costs" at me), but Wipeout 2048 is a spectacularly good looking first party game, and I think Uncharted looks very good as well.
The only third party launch game that can go toe to toe with Sony's own offerings is Marvel Vs Capcom 3, but hey, it's Capcom. Not exactly a small player, not to mention one who's very capable of amazing technical feats.
Don't get me wrong. I'm not particularly fond of non-native resolution games either, but considering how most third party games haven't exactly been hitting it out of the park in terms of visuals on the Vita, I wouldn't really say Sony's own developers have been dropping the ball here.