Thanks for the explanation.
I'm not quite sure why you think Sony is starting to forget what got them here though. I think it's the complete opposite. I thought they'd stand a bit still after the success of the PS4 but they seem to actually be taking big risks with PS4 Neo, VR and most of their first party line-up. Neo shows they want to retain their hold of the core market. PSVR wouldn't exist if not for indie developers. Their first party line-up is fresh and not more of the same. I think it's quite exciting to see where they're headed, and they had CJ at their booth so they automatically won E3.
And while I see the parallels you're drawing of a company going from their high to a low (360>One, PS2>PS3, and also Wii>WiiU), I do think the shift in Microsoft to go completely after the casual market was unprecedented. The Wii U failed but it was still a system with family friendly games focused on play; the PS3 was a failure but it was still Sony trying to build the most powerful gaming system they could to push the kind of games that do well on their systems. The Xbox One and later years of the 360 was about Microsoft moving away from their core audience and doing something completely different. So while I think it's nice to see their return, I'm just not all that impressed with it. Gears 4 being as safe as it looks, after that studio was pulled from an interesting new IP to work on it, is kind of a bummer. I was a bit tired of their output being Gears/Halo/Forza 4-5 years ago to be honest, so while it's nice to see them trying to win this audience again, I'm not blown away by what they have on the pipeline right now, and the Scorpio announcement killed any chance of me finally buying one anytime soon.
Overall I do think it's a great time for video games. I loved what the three hardware companies did at E3, and I'm also pretty happy with the state of EA, Ubisoft and even Activision, not to mention the absurd quality that games from independent developers have reached now.
Edit: Oh, I also thought you'd appreciate the God of War orchestra more. Even if that's not your favorite style of video game music, how awesome is it to unveil a game by having that big a focus on its music! Followed up with a live demo. Come on man!