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Rath said:

Sony's key problem is arrogant wankery in the upper management. You're never going to get anywhere if you honestly believe that all your competitors are in fact not competitors.

I don't know; it is better to view the market as a fight against disintrest in games. If Sony made more amazing games that people want to buy, and so did Nintendo, the total market would expand, it's not really that one takes share from the other.

The best corporate attitude to take is that your product doesn't just have to be better than the others, it has to be the best it possibly can be to get current non-gamers on to your platform. For example, Nintendo could reason that there with Mario all they have to do is be slightly better that Ratchet and Clank/LBP platforming to 'win'. But their success comes from the fact they don't bother to look at what Sony does when they design a Mario game.