Analyst: PlayStation Vita is 'sinking'

Cowen & Company analyst Doug Creutz believes the PlayStation Vita is "sinking" and that Sony may relaunch the system with a new form factor or lower pricing to help drive sales.

"We do not think that integration with the PS4 will be sufficient to drive an uptick in sales for the device," Creutz said in a note to investors today. "Thus, we would not be surprised to see Sony try a soft relaunch of the device beginning at E3, potentially including a different form factor and/or lower pricing."

According to a recent report, PS4 developers are being required to include support for Sony's PS Vita Remote Play function in their upcoming games.

As part of Sony's latest financial report in May, the company announced that it sold a combined 7 million PSP and PS Vita units in the year, up from 6.8 million last year. Sony expects to sell 5 million combined PSP and PS Vita units in the coming year.

By comparison, Nintendo expects to sell 18 million 3DS systems in the year.