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I hope they learned a lot of lessons this generation. I'm not sure this was one of their mistakes, though. Seems to me that Sony's going in both guns blazing on its first-party franchises, and it's got some good ones. Among them:

Gran Turismo

God of War

Ico/SotC

Jak and Daxter

Killzone

LittleBigPlanet

MotorStorm

Ratchet & Clank

Resistance

SOCOM

Syphon Filter

Twisted Metal

Uncharted

Warhawk

White Knight Chronicles

Note that many of those also appeared last gen, so it wasn't just Gran Turismo.

This isn't something you're supposed to say in polite company, but in my opinion Sony has the best first-party holdings in the world. Better than Nintendo.