It's a console. Vita console for your home and you use the dualshock 3 to play the games and operate it. Only in Japan for now, and it's $100.
Sony points out that the device will play, at launch, about 1,300 games. That’s because it can play all of the PSP and PSone games that are currently available to download via the PlayStation Network digital games service, plus many of the games that have been released so far for the PlayStation Vita platform.
Sony is positioning Vita TV as a great device for video streaming; at the Tokyo media briefing it stressed that you would be able to use the device to stream video content a wide variety of services.
Now this part is really the only part that interests me and is cool:
Additionally, a “future system update” will allow you to use Vita TV to stream PlayStation 4 games — if you have a PlayStation 4 console in another room of your house, you will be able to hook a PS Vita TV up to another television in a different room and play the PlayStation 4 on that television, via streaming.
That's actually a seller for me, will buy when available. I keep my PS3/4 in the living room, I have no access to apps or streaming or any of that in my bedroom, I like to watch movies or shows in there and fall asleep for example.
I can now spend $100 bucks and basically have a 2nd PS4 in my bedroom with access to streaming all of the apps and everything else and can also play my PS4 and Vita games on it. Can't sleep? Fire it up and play a quick game or mission. No more having to transport a box around the house.