Apparently this strategy seems to work also for hardware. Look at Samsung.
Instead of hundreds of phones, they have maybe a dozen now that they actively promote. Right now I can't leave the house without being bombarded by Samsung advertising, they're in some kind of feverish campaign over their new Note phone-tablet-thing.
And that's just for one "phone brand". Imagine if they do this to every other phone brand of theirs, which are already being called all "Galaxy". Samsung strategy is becoming a mess again. It will work in the short term (a year or so), and then backfire badly.