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PS Vita: Unable to enter Sony Entertainment Network account During Initial Setup

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[PlayStation®Vita] Updated 06/20/2012

The Concern

During initial setup, electing to link your Sony Entertainment Network account will cause the PS Vita to ask you to update the system software and return you back to the point where you can elect to link your PlayStation Network again, thus creating a loop.

The Fix

Here are the steps that allows you to complete the setup and download the latest system update. Once the system update is applied, you can then link your PlayStation Network / Sony Entertainment Network account information.

Initial Setup Process

The answers to most of the questions asked during the initial setup will not cause any problems. The questions listed in red below are require the specific answers as noted.
  1. Selection a language: (Choose your language of choice)
  2. Select your time zone: (Choose your local time zone)
  3. Set the date and time: (Set the current date and time)
  4. Do you want to sign up for AT&T Mobile Broadband service (3G/Wi Fi models only): (Choose either "Sign up now" or "Sign up later")
  5. Do you have a Sony Entertainment Network account? Yes, I do.
  6. Do you want to use your account on your PlayStation Vita system? Set later.

  7. Next, you will set up a trial account.

  8. Select your country.
  9. Set your birth date.
After the initial system setup, you can update the system software.

Click here for instructions on how to update your PS Vita's system software.

After the system software is up to date, you may in enter your PlayStation Network (PSN) / Sony Entertainment Network (SEN) account information.
  1. Tap (Settings) on the home screen.
  2. Tap Start in the Settings application's LiveArea
  3. Tap the PlayStation®Network option
  4. Tap Sign Up

This will open the Sign Up application where you can enter in your Sign In ID and Password.