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@bigjon - that's it.
@Chris Hu - If look at it in game sales performance then yes, no body beat Nintendo. But frankly, Sony's first party studios are more potent in term of producing hardcore gaming content. Beside the occasional Zelda and Mario games, Nintendo first party output is pretty much casual.

Sony spent all this money acquiring studios that had made proven hits. It is just unfortunate that due to the overly complex PS3 hardware, these studios spent too much time and resources trying to figure out the hardware resulting in much less time on making the game they want to make. If these developers were given a chance to develop for the less complex 360 or Wii, I suspect the number of hits they produce will jump several folds.