1) Arcades in Japan vs Arcades in the West
I think in part what Pachter said is true, the smaller living space in Japan has made it so arcades would thrive while in the west, it was more suited to putting everything on the console. If I can remember my history, arcades gained a bad reputation with the moral guardians in the west, and the surge of home consoles like the NES made it kind of difficult for the arcades to continue to thrive.
2) Why Doesn’t Sony Lower the Price of the Vita
He kind of gave a better answer than anything I can think of.
I hope to never have to know this much information about ties.