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Playstation is such an established brand, Sony wouldn't be better off to sever it. Selling at a loss didn't work out well for Sony with the PS3 but a Playstation is still a product people obviously want. They can change their business model next gen (especially if the PS4 is similarly built to the PS3), cutting off would be just stupid.

Look at what MS is doing in Japan to establish the brand of a product people don't really want, xbox360 prices in Europe were made low too, with plenty of advertising for the same reason. First gen xbox led to losses, RRoD fiasco led to more losses, you don't see MS pulling out because it's worth it having the system. Same with Sony. They make their games to market their platform, not the other way round.