Despite championing the device back in 2011, Ken Levine and the folks at Irrational Games have made seemingly no progress towards a handheld BioShock game. Apparently all the talk about what the game is was conjecture on Ken Levine's part; talk about a game he hopes comes to fruition.
In a podcast with IGN, Levine mentioned that the project is out of his hands at the moment. The business side of things has not materialized to the point at which the team can start actual development. At this point, a new BioShock game on the Vita is anything but a certainty, as the project is still not guaranteed to happen, despite Levine's hopes and dreams.