They don't have the budget to do that.  They aren't exactly making any money as it is.  They are still bleeding red.

the #1 rule if business: Sometimes you gotta spend money to make money!

They aren't the Yankees with a guaranteed cash flow.  They've lost 85% of their value in just a decade.  They don't have money to spend.  When you're drowning that fast, you don't strap cinderblocks to your feet and hope that one of them has a rocket on it.  You cut your losses in some areas and try to float to at least the top of the water.  Don't even think about soaring in the sky like Microsoft is or Apple.  That will get you in trouble and you'll just sink faster.

Yeah, that's pretty much the gist of it. The frightening thing is, you've got this Yoshida character going on record saying that they pretty much have no control over their output. Who the hell's in charge then?

Gremlins?  It isn't just their gaming division either.  It's everything.  As a whole, they just don't know how to run a business anymore.  At some point in time, they were dominant in all of their fields... they had the walkman, they had the new tvs, they had the ps2, they took over big name movie companies, they had positive PR... and it's all fallen apart under them.  I don't know how overall leadership could fail them that poorly.  I'm sure that's a topic you could teach an entire course on at a university.  The only part of them that has really gone downhill for everyone, not just them, is the music industry as a whole.  Everything else though, other companies are making money in, and lots of it.  Just looking at their film history, they tend to have bigger budgets than most studios, yet earn less per film.  And outside of the Spider-man trilogy, it isn't terribly impressive.

Microsoft in conjunction with Epic developed Gears of War which is just a year older than the Sony/Naughtydog developed Uncharted franchise while being milked for titles less often than the Uncharted series with 3 gears games vs. 4 uncharted.

Gears was a new and untested franchise which Microsoft in conjunction with Epic took a plunge on and succeeded.

Both Sony and Microsoft took a chance with a third person shooter series during pretty much the same time period. Why don't you accuse Sony of the practice of relying on the same old franchise when they do it to a greater degree than Microsoft?

Also, let's not forget Sony's big exclusive so far this year is a now ancient PS1 series, Twisted Metal.

Microsoft is not looking much better this year with Halo 4 (like the 8th game in series now?) but at least they also have Witcher 2 coming.

They have a life insurance business that seems to be doing fine. Their work on a new enzime that turns glucose into electricity looks promising, too.

You must not own a Xbox 360 wasn't Alan Wake a new IP they do release new IP it's just they don't sell well but they do experiment. Also people tend to forget Gears is practically a new IP that was created this gen.

Anyways as for the topic I agree with Sony they should focus on less titles but give each title more attention I never understood PS3 owners wanting like 10 exclusives every year I always felt that they just wanted many exclusives to rub it in Xbox 360 owners face but when you look at their sales it's obvious they don't buy them. Sony needs to understand not many people are willing to buy 2 or 3 $60 games a month so they should release fewer but higher quality games sort of like MS and Nintendo do.

Except when you are losing billions  not just a few billions but quite a few billions of dollars every year then maybe it's time to reconsider that sort of mentality.

Clearly most PS3 owners do not feel that way about exclusives.  Just the vocal fans who are a minority.  The sales don't lie.  Your average PS3 owner, judging by sales, is playing MW3... something vocal PS3 fans who care about exclusives... absolutely hate.