Sony needs to stop pretending graphics and tech sell a system. They need to become a viable first party.
As for the tech, I'll apply some of Malstrom's advice. Sony needs to compete with their own past. Their most successful portable device, in terms of both sales and mainstream attention, was the walkman. It filled the portable music player niche at the time when I don't think anyone would have thought a mere tape player and headphones could have worked (heck, audiophiles hated it).
So Sony will have to risk the ire of the gaming media and make a system that does something the mainstream wants, not what the snobcore wants.
What it is, I don't know. The point is for Sony to look at what make their successes successful, and it wasn't the best tech, it was the most needed tech.
A flashy-first game is awesome when it comes out. A great-first game is awesome forever.
Plus, just for the hell of it: Kelly Brook at the 2008 BAFTAs
