It started with the launch of the Playstation Portable as a competitor to to the Nintendo DS. When one company came out with a new model for their handheld system, the other did as well. So this put Sony and Nintendo as the primary competitors for the handheld market, always releasing new stuff to compete with each other in every way.
This was until the Nintendo DSiXL was released; Sony did not release any handheld back, at this time people assumed it to be because of the PSPgo's failure. Sony did not even discuss something like the PSP has a long or short life ahead of it. Nintendo had already announced the 3DS.
It was after the Nintendo 3DS' launch that people began to speculate a PSP2, for about two month's these rumors were halted due to the many presumed official revelations of the Sony Experia Play, the Playstation Phone. Then the big announcement came, the NGP.
As the 3DS lagged in both sales and good quality games, with the most anticipated (yes, Assassin's Creed: Lost Legacy is not going to come out) being canceled, Sony showcased the NGP, showing its power to the max, without giving any specifics.
At E3, Sony unveiled the NGP's spec's and details, everything about the NGP was revealed from price to hardware. The NGP became known as the Playstation Vita and from its time known as the NGP, it already had a blockbuster lineup in its hand, Call of Duty, Killzone, Uncharted and yes, Badman.
Also at E3, the Wii U was announced, and upon announcement, Nintendo lost a lot of shares. The Playstation Vita was then shown to replicate what the Wii U could do and on a modern generation console, no need to switch to the future. It can do what the Wii U controller can do, but more, such as a back touchpad and co-op.
To show their advantage over the Nintendo 3DS and the Wii U, the Playstation Vita and the Playstation 3 showed off something they else they could do that Nintendo's products couldn't do: get good games and work together.
The 3DS' sales then bombed, Nintendo cut its price by $ 100. Nintendo then lost a lot of money and shares.
That my friends is the story of the Playstation Vita.