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I think one of the things that happened to Sony is that after they became number one and especially with the PS2 they got used to not having to work for anything (third parties basically all came to them). It's like Rocky in Rocky 3 when he basically became out of shape because of unwittingly being in fixed fights and then when a real contender came along and knocked him down he was in complete shock and had no real idea what was going on or how to recover.

Sony is going to have to work harder than they ever have in their company's life if they are to have any hope of ever regaining first place (and I doubt they have any chance this generation, it'll likely require the PS4 and being lean, mean, innovative, and creative in order to do so).