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Sony’s strategy never comes together as a cohesive whole because their engineers are constantly in competition with each other to become famous for creating the next big proprietary format or gadget. There are so many proprietary formats or unnecessary electronics coming out of Sony that it makes Sony’s overall strategy and identity very confusing. The engineers all want to be the guy who creates something as big as the Walkman or PlayStation, they are all competing for that recognition inside of the company. However their ideas are created based on the love for technology, not long-term profitability.
On April 2012, Hiroko Tabuchi wrote an article to the New York Times saying, “Sony remains dominated by proud, territorial engineers who often shun cooperation. For many of them, cost-cutting is the enemy of creativity — a legacy of Sony’s co-founders, Mr. Morita and Masaru Ibuka, who tried to foster a culture of independence. But the founders had more success than recent executives in exerting control over division managers.”
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This is certainly plausible, even if it's unfair to blame an engineering focus for Sony's failures. How else can you explain the fact that they STILL insist on using insane proprietary standards like ATRAC and even new Sony devices like the Vita use custom storage instead of standard (far less expensive) storage formats like SD cards? The fact that the PS3's absurd design got greenlit and made it all the way to ship is further evidence that engineers are given freedom to make myopic technology-focused choices.