They turned that around in the long run though. PS3 started out practically a meme between the price point and Ken Kutaragi's undefendable bullshit among various other things but once they sorted their shit out, the cleaned the thing up pretty well and it eventually overtook the 360 by the end of that generation. There isn't much they could do at that point with how it was designed and that is clearly still biting them in the ass, but them seemingly trying to rest on their laurels isn't helping. If they wanted to sort out backwards compatibility, they could (and would have little issue in terms of the PS1/2 as an opening volley). But Jim Ryan ABSOLUTELY refuses to consider it and he needs to get fucked.
Microsoft getting Phil Spencer was the best thing that ever happened to them, where as Jim Ryan is basically Sony's version of Don Mattrick.