No offense, but you guys need to calm down.
This is Sony's First Party Studio thread. It's fine when people discuss potential additions to the WWS. And yes, these things boil up a bit when the competition makes their move, but that's perfectly normal.
At least I haven't seen anyone here claiming that Sony is doomed. Well, besides your snarky remarks. PlayStation will certainly beat Xbox in the next generation, even if they don't expand their studio portfolio, but that's missing the point.
From a consumer perspective, it's completely normal to want more. Sony delivers excellent games and accordingly the consumers want more of them. That's how people are.
On the business side, I think that Sony, but also every other company in such a situation, has the claim to gain more market share and not only to maintain it, or even to let it shrink. Therefore, it would be negligent of any company that is operating in a competitive market not to respond to an "attack" on its competitive advantages. After all, Sony's First Party Output (and third Party Exclusives) has always been an important factor in the success of every PlayStation generation. And while the competition is trying to catch up, the market leader must try to expand that leadership.
Conclusion: A competitor's action is always followed by a reaction. That's how a healthy competitive market works. And while we don't see much of it, I'm sure that Sony is already planning to set up more studios or even make acquisitions. The new development team in San Diego will not be the only addition to the WWS in the next few years. And I don't know why anyone would be upset about that.