Having PSVR2 as a product and not supporting it was very, very dumb.
No support for the best vr headset on the market
Failing to capitalise on a market where they had no competition (vr)
Why do you act as if Horizon CoM, Gran Turismo 7 VR, Firewall Ultra ,Ghostbusters: Rise of the Ghost Lord, Resident Evil Village VR, Resident Evil 4 VR, the upcoming Metro VR and many other games of its first year, with a bigger support than any other VR device year one featuring more AAA IPs and big VR names than ever, doesn't exist?
Also, Sony is happy with its performance, outperforming PSVR1.
PSVR has almost the totality of the non standalone (high end) VR gaming market, and around a third of the market when also counting standalone Android based ones (low end) like Oculus 2 and previous. Even if it's a market on its early stages, VR gaming is growing every year at a good pace and Sony is well positioned. Specially now that apparently they will open it to PC.
Launching the portal and not a dedicated handheld was very, very dumb.
Pushing half-baked product (portal)
PS Vita was a big failure, there's no market outside Nintendo for dedicated portable consoles that require dedicated games. But somewhere in the future a PC handheld that doesn't require dedicated games would make sense
Sony just mantioned they are very happy with PS Portal performance, which exceeded their expectations. Once they release PS cloud gaming cliend for Android and put it there will work even better.
I think for the next generation they'll do a PS Portal 2 that will be not only a PS6 remote play accesory and PS cloud gaming portable client, but a portable PC that also will run Sony's PC and Android games featuring crossbuy, crosssave, crossplay between all platforms.
That's to say nothing of chasing GaaS and always online tripe.
They had a very successful result with GaaS recently with MLB, Gran Turismo 7 (and Sport), Helldivers 2 and Destiny 2. And for the upcoming ones, make sure at least Concord and Marathon will be even bigger hits.
Total bullshit, their first party games and exclusives are selling better than ever. And most of the best selling, top grossing and most played games of their platform are MP, shooters or GaaS, so expand in these 3 areas is giving their core userbase more of what they want.
Chasing PC and mobile crowds.
PC and mobile are bigger markets than console, even more than PS. They have the majority of gaming players and revenue. AAA games are very expensive to make, and as shown with this layoff they need more revenue and profit. Which PC is already giving them and mobile will give them too in the future. This is why Sony and all the other publishers are also chasing it.
It's simply astonishing how a company that saw dominating success for four generations and for 30 years by doing the same thing, thought it was better a good idea to follow their competitor off of a cliff.
Sony aren't. They are more successful than ever and have been taking wise and smart long term decisions, including this hurtful layoff.
One big blow very rarely kills a brand, but a thousand cuts always does.
This layoff, which I assume an important part of them will be in gamedev studios and not only in non gamedev SIE offices, will help them cutting less productive people or initiatives, reducing costs and become more profitable. It won't negatively affect the brand.