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TheMisterManGuy said:
curl-6 said:

Yeah the PS3 losing half their marketshare and getting beaten by the Wii (and almost the 360 too) forced Sony to invest more in big, killer first party games, and the PS4 then benefitted from the investments and strategies put in place on PS3.

Before PS3, they didn't really need strong internal output cos they had the lion's share of third party titles, many of which were exclusive to PS.

They may not have needed it per-sae, but that doesn't mean they didn't have. At the time of the PS2, Sony had more than a dozen internal studios for games.

Japan Studio (Which at the time was just 4 product development departments within Sony Computer Entertainment Japan)

Polyphony Digital 

Foster City Studio

  - Naughty Dog 

  - SCEA Bend

Santa Monica Studio 

  - Incog Entertainment 

San Diego Studio 

  - 989 Sports

London Studio 

  - Team Soho

Cambridge Studio 

Studio Liverpool 

  - XDev

A pretty large development operation for a console that didn't particularly need first party development.

Never said they didn't have any, just that they weren't as developed as they would later become, nor as necessary.

Naughty Dog also didn't become a Sony studio til partway through the PS2 gen. Their PS1 output was all as a third party.