Well the second, more recent Sony quote was very specific about 80m consoles being a success,
and Sony recently passed that mark (and will sell more PS3 consoles and games for several more years).
Both Sony and MS have monetized more opportunities via online than was possible in previous generations,
so smaller sales are to some extent viable with that extra revenue stream...
I think Sony ate alot trying to assuage the high price which was mostly down to Blue-Ray*,
but in the end they won that format war, which also helped them sell more expensive TVs, etc,
so I think that as a company it worked out fine for them... both Sony and MS are apparently NOT
dumping alot money in dev cost/ subsidized new consoles this gen, which is probably at least in part due
to the lack of financial profit in last gen, but that approach seems to be working out OK for them.
* I wonder how HD-DVD drives MS sold for X360 to have it become useless, failing to defeat Sony's push for BR?
Which was a bizarre goal for MS in the first place, since which format won is hardly directly relevant to their business.
Beyond that, they pretty much took Microsoft to a draw, MS would have been a bit better off without RROD costs,
and their wasted efforts in Japan, but they both took it about even in the end... With MS already having
major losses from the original XBOX while Sony was much more profitable from that era and it's legacy sales.
Reputation wise, Sony did very poor in US market initially, but seemed to salvage that, with the late PS3 games
like The Last of Us really seeming to raise their reputation and bring home the potential of the PS3 to the masses.
More broadly, the focused console and even PC gaming market is just much more limited compared to
smartphones and all that, but somebody else having broad success doesn't negate the success of a smaller market.
I do think the mobile market is most heavily impacted by smartphones/etc, and that already hit Vita's success.
Sony should probably just integrate Vita into phones, or at least sell Vita-compatable phones that you plug
auxiliary controls into/slide them into a controller shell, with a consistent HW spec that perhaps is upgraded every two years with full BW-compatability to the previous gen game-phone. Sony can also sell phone-less 'tablet' versions with integrated game controls/rumble/etc (but also offering tablet functionality) just to catch all aspects of market.