Sony's Vita has had a difficult life, proving less popular than its predecessor, the PSP; outsold by Nintendo (will this be the last product we ever see this said of?) and desperately short of games which might make the platform an attractive buy.
So the news that Sony has ceased all in-house development of Vita games effectively heralds the death of the platform.
Of course neither the PSP nor Nintendo are the real reason why the Vita failed. The rise of smartphone gaming meant that it was dead the moment Sony dropped it onto an unwilling market.
Yes the Vita has better visuals, gameplay and controls than any smartphone. What it can't beat is the need to make a physical decision to carry an extra device just to play games. In the same way that the smartphone has killed the compact digital camera so it has killed the portable gaming system.
To paraphrase, the best games machine is the one you have with you.