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It built a better portable gaming device.
BBC: Viewpoint: How Sony slipped back
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Sony was certainly challenged to offer a way to deliver high capacity to its freshman portable gaming device, but the 1.8GB UMD must take at least some of the blame for the relatively slow load times for PSP.
ENGADGET: Switched On: Stuck in the Middle with UMD
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Since the ARCHOS GamePad is effectively a portable gaming device and tablet hybrid, the company created a patented game recognition and mapping tool so that any game available on the Google Play store can be played using the GamePad.
FORBES: [Updated] The ARCHOS GamePad: 7" Android ICS tablet with a built-in controller
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It had the leading game console at the time, it had a phenomenally successful portable gaming device, it had the most respected TVs in the market, its cameras were doing brisk business and it had a line of computers that were sufficient.
BBC: Viewpoint: How Sony slipped back
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While Sony holds the lead in deep, portable gaming for those who pick up the PlayStation Vita device, game experiences for smartphones and tablets are quickly becoming more immersive.
CNN: 5 quad-core mobile games to watch
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The handheld device will be called the 3DS, succeeding Nintendo's DS series of portable gaming consoles.
CNN: Nintendo to unveil 3-D gaming console
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But in an effort to provide a portable gaming experience that was on par with that of a home console, Sony built a more expensive device.
FORBES: Is Gaikai Acquisition Proof that Sony is Dumping PlayStation?
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Sony is planning to launch a new handheld gaming device by the end of this year, which will act as a successor to its PlayStation Portable, the Japanese electronics giant has announced.
FORBES: Morning Tech Wrap: Nokia, Sony, Facebook