Unfortunately, as I'm a Nintendo fanboy, even though I own both, I think the Wii U is worse off. The Vita has a relatively worse upcoming library, but it is cheaper, handheld (and as such appeals to more markets), and can be used to control PS3/4 games (even though most PS3 games are only able to do that if you have CFW), so people may be inclined to buy it for a lot more reasons than the Wii U, which for now is simply a sub-par console in terms of specs without a library to compensate for it.
You kinda forgot the most important item in selling a device that plays games:
GAMES.
The Vita's library, going forward, is abysmal*, and the U will only improve (Mario World, Mario Kart, Zelda, etc.). The Vita has no appeal to any *sizable* market segment because it costs too much money and has no compelling,
mass market,
GAMES. Furthermore, Sony has no way of generating any momentum because they have no
GAMES and, to generate sales momentum, you need numerous, high profile,
GAMES launching in a narrow window.
The only other factor in consideration is price (U versus the other consoles; Vita versus tabs and 3DS), and the U, as a console, is in a much, much better position than the One and a better position than the PS4, even without a price cut. The Vita has to compete against tablets on one end, and the 3DS on the other, the latter of which has massive appeal to *sizable* market segments because it has
GAMES. (I also marvel that you think the U s competing with the Vita. Really? Amongst whom? Gaming message board posters?? With a market that huge Sony can expect to be...right where they are right now.)
(And really, lol@the idea that the Vita's ability to stream PS4 games will have any effect on Vita sales...I mean, seriously? People are going to drop $400 on a PS4, $50 for a PS+ subscription (for MP), then turn around and drop another $200 to play games off-screen? Suddenly the XBONE doesn't seem like such a bad deal...)
I own both--and sometimes even enjoy the Vita (bring on Muramasa! A Wii port...sigh...)--but your reasoning and argument are questionable at best. U has issues**, but they are nowhere as wide and deep as those of Vita, and that's w/o even getting into the precarious financial shape of Sony and their primary focus shifting to a battle they can actually win with PS4.
*Save it Sony fans, we all know that the library through the rest of the year is anemic-at-best, even if a few of you insist that Tearaway et al
just have to be better games than whatever Nintendo is bringing out because you prefer those games. (In which case I refer you back to *sizable* market segments and gaming message board posters.)
**Lack of online MP is really, really starting to try my patience as a fan, and it is costing Nintendo hw sales, even if they are completely unable to see it.