sie management was in chaos. They lost president (kodera), wws head, and demoted shu. This tells me something was fucked up at sony. Their content lead is now under threat, and maybe their hardware strat was bad too.
MS has more studios with way way more variety, and rumours say they are locking down third parties as well. Sony games release at a snail's pace, and there has been no expansion except for insomniac. Apparently MS is aiming for 1 exclusive per quarter. Sony cannot match that with their AAA story games taking 5 or more years, and their racing games taking 7+ years.
If their management was bad at content strat, it isnt far fetched to think they would be bad at hardware strategy as well. Not technical incompetence mind, but strategic incompetenc.