It was a combination of the PSP and the PS3 that really made me think that Sony had lost its way, and made me question whether Sony ever knew what it was doing ... Both systems were expensive, focused on multimedia functions and the adoption of movie formats people hadn't shown an interest in yet, and (basically) were built off of the statement that technical advancement in games was all that mattered (even though Sony had been successful when they produced less technically advanced hardware than their competition).
Edit: I should also mention that at a similar point in time Sony was on a rampage of screwing as many customers as they could with installing rootkits and exploding batteries; and their "viral" marketing campaigns seemed very sleezy by doing things like (illegally) spraying corporate graffitti on people's buildings.