They certainly cut software support for it too soon.
After 2010 they dropped it like a rock, leaving it to coast on fumes for its last two years, and even handled the localization of games like Xenoblade, The Last Story, Pandora's Tower and Fatal Frame 2 very badly; all four should have seen timely worldwide releases.
A 2012 replacement wasn't too soon per se, but they should have at least supported it properly up until then.
Bet with Liquidlaser: I say PS5 and Xbox Series will sell more than 56 million combined by the end of 2023. (And over 130 million lifetime)