Android by itself is rather small marketplace despite userbase compared to AppStore and not really that attractive for developers, serves as second platform for those games, that performed relatively good. Will Sony be able to fix that to generate more healthy revenue?
You are ignoring Android's exponential rate of increase over the last couple of years. Now that the hardware and userbase has eclipsed iOS and about to pass RIM, devs will follow. Its a trailing effect and by next year it will be apparent that Android development is at par or greater than iOS. Additionally, while Android market is not as large as iOS is currently, its still making solid profits for its devs thanks to the dramatic increase over the last year of admob advertising.
Sony's Suite and PSN will will add the final layer that is missing... entertainment, i.e. music, movies, and of course games. This is something Android has fallen short at as compared to iOS and iTunes. But as this service permeates the market throughout 2011 this will be rectified. I'm sure with 2.3 and 3.0, Android will also introduce a sister generic service that is solely focused on these media types.
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