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It's going to be tough for Sony to return to PS1/PS2 type dominance sicne the market is more saturated and more competitive now. Though, I do think their next console will do better than the PS3, at least out of the gate.

And, not to take away from the successes of Sony in the late 90s-early 2000s, but part of their absolute monopoly on gaming at the time was assisted by Sega's terrible marketting causing their eventual collapse, along with Nintendo making boneheaded and stubborn moves with the N64 and Gamecube which alienated their fan base.

edit: and I know this is about Sony as a whole, but I just feel like talking about their gaming division. So sue me :P