Digital distribution and improved development tools mean that some games get ported to the Vita for sales in Japan, and then come over to the U.S. digitally because why not, but there are very few full retail Vita games being released (I am not counting something like Limited Run that's a specialty item.) There are also very few exclusives; it's almost all ports at this point, with a few notable exceptions.
If we were still in the era of physical media only the Vita WOULD be dead. As it is, it's being kept alive by digital distribution and the ease of ports, as well as a Japanese video game market that's portable focused and hasn't had a real Vita competitor (the 3DS is a somewhat different thing.)
I think the Switch will prove to be the stake in the heart of the Vita. Once it reaches greater market penetration (which won't be too long) Japanese development will move over to the Switch, which is in some ways like a Vita sequel, and the Vita will just get random ports from companies looking to squeeze a few last bucks out of consumers without Switches. To be fair, it had a decent run (5 years or so?) and has a pretty good library if you don't only count exclusives, so I don't think it's a failure of a system. I have one.
I think people say it's a 'failure' because it was pitched as "console quality AAA games on a portable" and those dried up quickly. It was kept afloat by visual novels, JRPGs, B-tier Japanese monster hunter type games, and ports of indie games. That doesn't make the library bad, but it's not what was promised, which was Uncharted: Golden Abyss and Gravity Rush. That part of the library is tiny. And there haven't been any of those for a very long time. So people who bought their Vita looking for those games were disappointed and feel like it failed. People who just wanted a portable way to play indies and RPGs had a good time with it.
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