I seriously think that the Gran Turismo fiasco is a major part of that loss. They should have had GT5 out on full blown release within weeks of the PS3 being launched, imo.
Even if was a mediocre game at best, they then could have followed that up with a great GT6 and still had a decent tussle against the racing games on the 360.
As it is, the attention span of Joe Public gamer these days, seems to be measured in weeks - certainly not months. If something's not there to fill that void - they will quickly move onto something else. And waiting years for the flagship game on any platform is financial suicide. You'll have your die-hard fan base that will buy it, even 5 years on and selling at £80. For the vast majority however, they will always be looking for the 'next big thing'.
Fickle fcukers, if I'm honest.
D.