Gamasutra is today reporting that Sony's San Diego studio has stopped developing full-blown PS2 and PS3 games. Instead the studio is concentrating on developing downloadable content for the PlayStation Store.
The thirty-person development team has split into three teams of ten, with each group working on a separate title. Hopefully with a setup like this we can see some good quality downloadable games coming out at a decent pace. Sony seem to be putting a lot more emphasis on first party support for their online service, as opposed to Microsoft's Xbox Live service which is almost exclusively third party. If Sony keep delivering cheap, quality, bite-sized gaming on the PSN with games like Calling All Cars and Blast Factor then it will do a good job placating us while we wait for the major titles to be released.
We are certainly looking forward to seeing what comes out of the San Diego studio in the future