Read the passage below and determine which combination

Solution

Statement 1 can be inferred. The passage explicitly notes that by the mid-2000s, Sony was "struggling against aggressive digital rivals," validating the competition factor. Furthermore, the turnaround specifically required "eliminating bloated, redundant departments," which logically indicates that an inefficient internal structure was a major part of the mismanagement causing their stagnation. Thus, Statement 1 is a valid inference. Statement 2 can be inferred. The text states that the structural overhaul "narrowed the company's focus onto a unified entertainment and gaming matrix," and that the resulting "PlayStation console ecosystem... engineered Sony’s multi-billion-dollar modern resurgence." This directly proves that consolidating and focusing the product line was pivotal to the company's financial revival. Thus, Statement 2 is a valid inference. Statement 3 cannot be inferred. This statement claims that Sony's current success rests exclusively on traditional portable audio hardware. The text flatly contradicts this by explaining that their modern resurgence was driven by the PlayStation ecosystem, image sensors, and a digital network of "exclusive software networks and subscription streaming services." Therefore, statements 1 and 2 follow seamlessly from the text, making A the correct answer choice.