The problem being that it might not take off, and to be honest there are a lot of reasons why it might not take off at all, or be entirely counter productive for Sony. So they might not only fail to make money on this, but if it makes the space more competitive. It could actually cause Sony to lose money not only on software, but hardware on top of that. I really don't like this from a purely strategic stand point. This is like inviting Google and Apple into the space. While their infrastructure is far more vast, has more ins with consumers, and has more devices on the market. I just don't think Sony should be doing anything to move the market away from dedicated hardware.
It takes a lot of upfront investment to move into dedicated hardware, but virtually next to nothing in comparison to invest in server clusters. Especially when a company is based almost entirely upon that alone. As for whether Sony has the cash to be doing all of this. Yes it is true you need to spend money to make money, and one way to get out of a hole is to spend your way out. The problem with this kind of strategy is that there is real danger that it could cause much more harm then the good it might do for the company.
One way to look at is Sony being daring. Another way to look at it is Sony has become desperate. I suspect it is a little bit more of the latter then the former. I think they are making moves, because they think they have to make moves, and I am not seeing much in the way of a cohesive focused strategy. These moves could leave them in a very vulnerable position. Where they need to defend more real estate.
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