As others have stated, this statement absolutely blows me away. If this is representative of Sony as a whole -- and not just Yoshida's analysis -- then I have given Sony far more credit than they deserve for a very long time.
To be specific, I thought Sony understood how tenuous and fragile third party support is; that support is built on trust, faith, and belief that a game starting development today will be profitable when released on a specific system 1, 2 or even 3 years down the road.
This is a big reason why Nintendo has struggled with support; entering in to this generation, developers did not expect or believe the Wii would be such a massive hit, and even once it was, nobody expected it to continue that way because the support was going to be so thin a few years down the line (and on that second count, they were right). And so despite the Wii's enormous success, the system never got developers believing in its long term potential -- a self fulfilling prophecy which ultimately proved fatal. By contrast, look at the PS2. Despite that system's shortcomings (without even considering the PS2 read disc errors, the PS2 was, unlike the PS1's famously cheap and easy development environment, considered difficult to develop for in its time), the PS2 already had MGS2, Devil May Cry, Onimusha, FFX, and GTAIII (Which in retrospect was the most important) all planned as exclusives games in development before the PS2 even launched. These titles made the PS2 a great system even if it was difficult to develop for and wasn't quite as powerful as the Gamecube or Xbox.
I assumed Sony understood this; that this support was built on faith and good will. I thought they understood long ago how important and difficult it was to earn this trust from third parties, and that this serious understanding was a significant part of what allowed them to outflank and outcompete Nintendo so thoroughly for over a decade.
But perhaps I was wrong. Perhaps Sony thought that this support was something they magically "deserved" because they are SONY and therefore everyone will always be loyal to them forever. Instead of viewing Sony's great successes as 1) The PS1's strategic outmaneuvering of Nintendo's N64 and 2) Sony's understanding of how important it was to keep the fragile but highly profitable third party alliances made in that time period alive across generations, I may now view Sony as a company that had one really good idea with the PS1, and who have been coasting on that success ever since, simply assuming they would get support and dominance because they deserve it.