Reduced or focussed? The person at the top of any organisation is not,
or at least definitely should not, be making the decisions related to the implementation of a product. That's probably only ever really happened successfully during Steve Jobs second tenure at Apple. The person at the top is there to steer the whole ship in a direction and appoint trusted heads of key departments who report to them, and it's those department heads, and their teams, who make it happen and to decide how best to do that. The person at the top is there to provide clear leadership, allocate budgets an ensure the right resources are in the right place.
When PlayStation launched the two issues were the hardware and the game software but the technological landscape has expanded and so has expectations for CE living room devices so you need more people, or the same people but not with ever-expanding responsibilities. Spread people too thin and everything gets done badly. That's my take on what Sony has been doing with restructuring. Giving people less to worry about and more to focus on. That's how things get done right.