To expand, they're not bad at software per se, but they missed the boat on the idea of connected devices and the whole ecosystem that Apple and Google have done so very well.

Japanese phones were several years more capable than the first few iPhones and at the time it was thought that Japan would never use them. What changed that was how much better a phone was when it connected to a store to buy apps and games. Competition purely on electronics doesn't cut it anymore.

It's a shame Sony didn't realise this sooner, they've made phones, laptops, game consoles, music players for years. They should have been in the position to do the iTunes store or Apps way before Apple. They seem to only be trying to do such a thing now with bolted on crap like replay sharing on PS4.

Edit: Sony have a record label as well!