The Playstation Vita is going to be priced at $250 for the lower end model and $300 for the full featured version. Yes the Vita will be a much better gaming machine than the PSP but the buzz around it is really not very impressive. It is being pegged as a portable PS3 and nothing really stands out to make it truly different. If you were to ask me if I would buy a portable Wii, I would probably not give it a second thought and never consider it since I can play it in the comfort of my own home.
The Vita will have more of a problem selling than the 3DS did since it will be priced more and it will basically be a portable console on the go. The hardcore will buy it but the sales will lag greatly after that. Nintendo learned their lesson with the 3DS and will probably never release a portable handheld console at a price so high again. Being aggressive is how Nintendo has been so successful for the past 5 years.
Doom & Gloom perception (They are still making a profit even today) for Nintendo basically means that killer app games are coming with a vengeance. I've never got that impression from Sony.