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Sony has never been a big software developer. The big games from the last generation (i.e. PS2) were almost exclusively non-Sony published titles.

As far as I know, Sony only have TWO franchises that sold (really) well in Japan:

 - Gran Turismo (GT5 Prologue is out) - (GT4 did 1.1m in Japan)

 - Everybody's Golf - (EG3 did 1.4m in Japan)

http://vgchartz.com/games/index.php?name=&console=PS2&developer=&publisher=300&genre=&keyword=&order=Hits

God of War doesn't sell, R&C doesn't (didn't) sell, The Getaway doesn't sell (etc) - in Japan.

...

So in a way, I agree with you - Sony needs to develop their own (in-house) innovative titles for the PS3 (Japan and all). It will be really interesting to see how LittleBigPlanet sells in Japan...



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