I think the original article, ridiculous as it is, is just saying Sony could "fall out of the battle", not that they might close up shop. MS and Ninty were never IN the battle last gen, and they're both doing fine right now. Well, MS is about to be doing fine... I think what is likely for Sony is some "corporate reorganization," or whatever they call canning the higher-ups these days. There is no division where Sony seems to be entirely on top of things right now. A lot of divisions with sporadic profits, and a couple with sustained profits... And a SCEA division eating through much of those profits. They're a company with a great history, and I think it is just a matter of time before they have another product like Walkman or PlayStation, but right now its hard for me to believe Blu-Ray is that product, and its hard for me to believe that they find that product with their current management...
"[Our former customers] are unable to find software which they WANT to play."
"The way to solve this problem lies in how to communicate what kind of games [they CAN play]."
Satoru Iwata, Nintendo President. Only slightly paraphrased.