Do you mean a Nintendo Android Tablet ? (or a Sony Android gaming Tablet for that matter)
No I mean a more serious GPU and CPU and second analog stick, something a "core" gamers would more seriously consider for Christmas @150$. But Nintendo is Nintendo anyway I gave up having expectations for them, though Sony is different.
Usually when you talk about price, you need to specify the target audience and the value proposition at the same time. As long as Vita is targeting core gamers, it is unclear if dropping price alone will help. A lower price will have implication in Sony's profit & loss. The Japanese price drop had a boost, and it's on its way down again (perhaps to a slightly higher sales average, not gangbusting).
Are core gamers (or occasional core for a lack of better word) buying at this price, no. The target audience is obviously people that play games, they obviously doesn't want to pay that price (same for the games).
Low volume has an obvious impact on available games (/Sony has to help in some way).
I think that core gamers means pretty much nothing (/ it is a moving target depending on who you speak with, we need proper wording on the matter, I'm not sure how marketing people classify "us") most of the people that I know and that are playing video games (more than often PC, but a few had a ps360) play core games in a pretty occasional fashion, definitely not the type that play tenth of hours a WE, still they more often than not they enjoy the same games as core and hardcore people, casual is not a correct way to describe them as casuals more than often means people that play social, party games, etc.
Back to the point, occasional gamers and casuals depending on the word you use, are the bulk of the gaming crown, they do not spend that much still thanks to their fair numbers they are significant to the industry. The handled market mostly no longer reaches them, whereas phones and tablets paly a part into that matter of fact, I think that it is a bit of a one side view of the equation and that somehow absolve the console manufacturers and editors alike of their responsibility on that matter.
I think that handled market shrink that fast is because first the 3ds is not that much of a compliant device from a hardware pov and from a software POV, to some extend I find stupid that some editors invest (loose money) on games played for free on FB or some phones (may be that approach is worth a try though I fail to see how you can really sustain that, it is a stupid race to the bottom, anyway...)but did not considered significantly lowering the prices of the games on devices on which people used to spend money to play games.
If means lowering the content quality so be it => you have no choice anyway but to adapt to the market are aiming at.
Now the editors reaction could be to some extend be sum up as such, OK I can't scale back the cost of my game so they sell significantly cheaper (say just above the price of a BRD) so their answer is we give away the game for free or move to a completely unprove market and business practices... Weird to me.
For me it somehow implies that too potent hardware is not a match for that market (where on should have tried to drive price down), but there is a middle ground, I don't think that Nintendo is there, Sony is past that point imo (/overspecced). Not too mention that Sony wrt parts is a costumer for Sony which does nothing for the price of the device (still it is much better than what Nintendo does).
Overall it is a pretty sad matter of fact, I changed my view from quiet some months ago (I just go a decent smart phone and was over optimistic about the whole gaming potential of those devices), they definitively bite into the handled market, but I see no proper reaction from Sony which positioned the PSV not for the core gamers but hardcore gamers and with a beefy budgets for gadget (+the games).
Nintendo does its stuffs let say.
They should look at the picture holistically from content creation to end user benefits. PS4 RemotePlay may help, but probably insufficient in the long run. I don't think they need to tie Vita to PS4 solely. It should be useful in its own right (e.g., Working with PC, Android and iOS; new gaming concepts, exclusive content and deals, ...).
That said, Sony should be able to find other avenues to reuse/extend the Vita base design. Vita as it is right now can only be appreciated/understood after you own one. That's a hard sell.
Sorry it is indeed a hard sell, I don't think that it will make Sony any money. I see no reason to buy one at this price, Sony would have to lose quiet some money to sell it @150$ When the PSV will reach that price its power will be a fraction of what tablets provides, it is not good.
The market analysis they made before considering the product, its BOM and market positioning was failed. That is pretty indisputable, now my take on the issue could also have gone wrong too, still I think that once it will all be said and done it will be tough to argue that in front of the market disruption and threat the mobile devices presented, handled manufacturers even tried to adapt to those new conditions.