Both Sony and Nintendo have good strategies with very different approaches.
Sony gives developers a lot of freedom, so much so that sometimes they publish average games. But this also results in some amazing games and a lot of variety. They're also not scared to try new things that most publishers wouldn't touch with a ten-foot pole, things like Heavy Rain. I suspect this is because its their strategy to strengthen their image as a console with experiences that can't be found elsewhere, even if it means making losses every now and then on certain games.
Nintendo has way more control over its products, but their quality assurance is better too, and they won't publish a game until they think it's up to their very high standards, although this means draughts sometimes as they don't seem to have enough studios. But with this, they make sure their franchises remain popular and timeless. Also, they have a much stronger brand image when it comes to their games. Many people may buy a game simply because it says Nintendo on the box, not so much when it says "Sony Computer Entertainment", at least outside of forumgoers.
Ultimately, I'd say both are really good. I'm more of a Sony guy but that's subjective and I can see that Nintendo really takes good care of their products. About MS, I see them way behind both tbh. They have some deals with 3rd parties for launch, but who knows in 2 years what'll happen, and they rely on only a few IPs of their own.
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