Sony (NYSE: SNE), which can never make up its mind about its digital downloads strategy for the Playstation brand, has done another about turn: it has decided not to pursue a music download strategy for its Playtstation Network (PSN), we have learned, and its head of labels relations has left, as a result. CNET News last month that the company was speaking to music labels about putting together a music service for its PlayStation Network, the company’s multiplayer gaming and digital download service, and then port it onto PlayStation Portable. Nothing was decided by then, the report said.

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Last summer Sony started adding movies and other TV content onto PSN, in addition to its mainstay of gaming downloads. It now seems that Sony has decided it doesn’t want to resurrect the ghosts of Sony Connect, and will keep out of music downloads. That doesn’t mean it won’t ever go in that direction, and it could still be talking to third party music service like Pandora or iLike, but its direct talks with labels are over for now. Of course Sony now fully owns Sony Music Entertainment, so it would be crazy not to have some sort of music service on there. The company hasn’t responded to requests for comment.

Expect some content announcement with the new PSP Go launching this week at E3. Some details have leaked out prior to the show; details here.