Netflix's business model doesn't depend on developing and selling hardware. Sony's a hardware company first. Sony is now forced to play catch up to increase their market share and mind share.
Software is way more important than hardware in this modern age, but having a strong software profile can help you with hardware, but again, we're going to be in a post-hardware age sooner rather than later.
You'll eventually see a Sony PC launcher, mobile store, and handheld. All of these will be buoyed by stronger software and IP.
The same focus on AAA SP games that secured their leadership of the entire industry? That Sony needs to play catchup? Who are they catching up to? The dead xbox? Or Nintendo, the company that thrives on AAA SP exclusives?
Sometimes success becomes your biggest weakness and if you remain blind to changes around you, it can be your downfall.
AAA SP games are great. That's all I play. But from a business standpoint, they're one and done and have limited range against TAM.
Nintendo has a HUGE advantage over Sony. They've been developing IP for 40 years. Sony's longest running franchise IP is less than 20 years old (God of War). You could give a nod to Ratchet and Clank, but it doesn't have the range of God of War.
Sony was at a disadvantage from the start because they didn't own the rights to Crash Bandicoot and Spyro the Dragon. They didn't have the budget/talent to make Syphon Filter bigger than Metal Gear Solid or Splinter Cell. The Getaway failed to become a GTA killer and Killzone failed to become a Halo killer. Zipper Interactive didn't have the budget/talent to bring SOCOM to a more modern stage.
When Sony doubled down on IP that's when they started to finally find some real success, but they didn't have a transmedia strategy so their success was limited to the gaming universe.
There was a Mario cartoon in 1989.... Same with Captain N: Game Master.
Sony is a small market cap company in a world of big tech. Their competition is no longer Xbox, it's Apple, Amazon, Google... people who could buy out 3rd party publishers right from underneath them.
Imagine in the next 10 years: Amazon buys EA, Apple buys Take2.... what kind of a blow do you think that would be to Sony?