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the-pi-guy said:

They'd be losing more traction if they didn't.  They'd either be late and wouldn't make up as much ground as they were able to or they wouldn't even be there.  

I don't disagree with you.  However they are definitely in a horrible position because of it. Nintendo could make a come-back, Nintendo takes all kinds of risks and a lot of them pay off.  Sony however has always been a low-risk company, the only real risk they have ever taken was the PS3, and that blew up in their faces.  Now they are probably playing it safe this generation in every way that they can play it safe.