SCE strenght is to use the know how of Sony Electronic division to build an advance system ( from a technical point of view ) and use their own factory to decrease the production cost at a rate unmatchable for other company not in electronic business like Nintendo or even Microsoft and let thid-party do the rest ( large userbase and smaller contraints than classic gaming company like Nintendo ).
PS3 problem is that not only is over-enginered to try to battle MS funding and to try to impose to the market Sony's electronic products via Playstation brand but the videogames market hit a point were the technology offerings by Sony or MS has surpassed the market demands ( only a niche albeit large seems fully appreciate Sony and MS 's offering ).
This market condition opened a chance for a disruptor ( Nintendo ).
Nintendo played its hand relying on its own strenghts ( integration between software and hardware, large appeal of its products ).
Suggesting Sony to copy Nintendo on Nintendo own field is foolish like suggesting Nintendo to copy Sony on Sony own field.
“In the entertainment business, there are only heaven and hell, and nothing in between and as soon as our customers bore of our products, we will crash.” Hiroshi Yamauchi
TAG: Like a Yamauchi pimp slap delivered by Il Maelstrom; serving it up with style.
