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Japan Studio stalled a lot during this generation and Polyphony are Gran Turismo machines. Third-party relationships with companies such as Level 5 are still there, but they are broadening their horizons to other franchises and other machines (namely Layton on DS).

Sony need another Japanese Studio, I would agree, or at least to work on some of their third-party relationships. Having teams like Nihon Falcom and to an extent Atlus on board is great, but there's plenty of others that they should be working on.