Incompetence and mismanagement! Every Japanese studio is slower than molasses on a cold day unless they are working on portable games. What does Sony have them do? Waste time on PS3 games. Beyond that Sony has no big ips for Japan. They certainly don't make games in any of the genres that sell well there. I truly feel a complete reorganization is called for.
Its time Sony started importing western devs to head these studios. They can improve output via workflow if nothing else. Their western studios can put out quality games on a tight schedule. On top of that I would try focus their output into games that are similar to the following genres RPGs, Platformers, Hack n Slash, Simple Sports, and Simulation games. On portables as they rule the roost in Japan anyway.
