The long-term viability for the Playstation Vita outside of Japan depends on whether it can avoid taking on the same identity as the PSP - the home for console-type experiences on the go. It needs to be a bankable platform for smaller games based around quick play sessions, or very experimental games with graphics not necessarily aimed at lots of detail and polygons. In other words, more games that are suited to a handheld device.
The PSP was plagued by this faulty idea that the way forward was to replicate an experience already on consoles, with games like Resistance, Gran Turismo, Killzone, God of War, LittleBigPlanet, ModNation Racers etc. all having a go and seemingly falling short because they weren't really designed for the system.
The launch window line-up for Vita is somewhat encouraging, what with quirky titles like Sound Shapes or Escape Plan. Having said that, the possibility of it falling into the same trap is a very real one. Just like in 2004 at the launch of the PSP, this is being pitched as the cutting-edge handheld that's trying to do exactly what your home console PlayStation does. When I see in the pipeline an Uncharted, a Resistance, an LBP, a Modnation Racers, I shake my head, not because I think any of them will be bad games, but because it's happening again. If the Vita is going to compete in this market, it cannot follow that same path. These established franchises shouldn't just be recreated - the game design has to adapt to the platform, or at least do things a little differently.
Hell, I don't know. I'm not an analyst, and I might be talking out my arse. From my perspective, it just seems like history may repeat itself if they think that essentially downscaling PS3 titles is the software that this system needs.