An Official Playstation Magazine article from the UK back in February confirmed that the Japanese version does have a slot for Vita game cartridges. It would be highly confusing if the North American and other versions lacked this feature.
I wouldn't mind getting one, but has there been any word rather or not it can play retail vita games as well? None of the websites are reporting it.
It's essentially a Vita without a screen, so it should have the cartridge slot. It uses the Vita's proprietary memory cards too. Compatibility with Vita games is very limited at the moment though. I think some of the previously released games will get a patch for that.
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