Sony can't do software. Its too competitive - and they don't have any form of competitive in the services.
The only reason they are doing *any*, is because they are leveraging off their hardware platforms which are popular.
Take away their phones, PSP & PS3 - and what software are they going to sell?
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This is where Ninty & MS have their edge. MS are masters at big, complex, intertwined systems (albiet buggy ones) - and leveraging off their OS install base.
And Ninty are masters at games, as they have always been. The programming is secondary to design - but both are important, and both leverage off hardware.
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Sony needs to focus on hardware. They need to put their prices UP, and get back to making quality devices.
20 years ago I loved to buy anything Sony. It was the best, it had more features, and it lasted forever. And I payed more for it. Its just not the same anymore - Sony have dropped, everyone else has caught up. I can now buy the same quality for half the price - why bother paying more?