As always, Sony can make some absolutely sick hardware, but their software is lacking at best.
The PS3 is a nice little console. 2xHDMI, 3xEtherner, 6xUSB, 250GFlop GPU (something like that), cell processor (which has its own benefits over a x86, at the cost of usability) etc. It was impressive a couple years ago atleat.
The PSP with a 333MHz CPU and high resolution screen was also impressive, back when it was originally released... Now we have phones with AMOLED screens, 1024x768 resolution, 1GHz CPU's (that can overclock like a beast, 512GB of RAM etc.
Sony, pick your asses up and get to work!