Sony has pointed to the resurgent Nintendo 3DS as proof that there is room in the market for a dedicated handheld gaming device.

"One of the encouraging things about 3DS' sales performance at Christmas is that it is confounding the naysayers who say that there is no room in the market for a dedicated handheld gaming device," SCEE president and CEO Jim Ryan told MCV.

"And to that extent we were encouraged by how 3DS did over the last month."

The CEO believes Vita sits in a distinct market to the rapidly expanding mobile market.

"There are two distinct markets," Ryan explained. "The quality, the immersiveness, the richness of the experience that we believe we are going to offer on Vita, way exceeds anything that we believe to be available on any smartphone."