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It has to start with Japan first and then Europe where they are strong (or at the same time).
Sony should focus their software from Japan and Europe. Release games that they want.
It has to start with Japan. No big JRPG? until now? The lack of support in Japan really hurt them. Japan is still important, Japan is still one of the largest market in the world. Look at the PSP right now, The PSP have been resurrected because of Japan. The games that are coming in the PSP are big and the PSP help Sony to lower the price of the PS2.

Price cut won't help them right now financially, it will help them in market shares but will hurt them in even more. They should focus on  making a profit first and do a price cut when they are ready.

Sony should advertise their games more. No matter how great your games are, if people doesn't  know about it. It's useless.