Sony needs to stop trying to compete with Nintendo in their own market. The Nintendo Wii is a party game niche system, and has little value outside of that niche. Their game library isn't really that impressive, and their system, on a mechanical level, is no comparison to the PS3.
Sony needs to start cranking out ads with beautiful game footage for kickass games, and exploiting their library. Do they still have the huge, wonderful library like they did on the PSOne and 2?