The problem with Sony is quite simple, Nintendo was for many generation driving force in Japanese development, they were harsh and unforgiving, but they forced the industry to progress, then Sony became new force but their only success was role of an Anti-Nintendo, the publishers became certain under Sony that they control the platform holder and success of Playstation depend on them they became lazy.
Nintendo on the other hand in order to survive forced themselves to play safe and to find new opportunities because the original market went to Sony, they supported platform mostly of their own with little external support.
The truth is for Sony was not important who provide the content, and so the entire industry lack of creative force lead to stagnation and then downfall.
Now they are no longer leaders but mere emulators they try to emulate western model with hardly any understanding from their own market, and this is why for example PS3 saw only two million sellers, pathetic compared to any previous generations.
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