Loyalty is an illusion, brand loyalty doubly so. Only a very easily influenced person will stick with an entertainment company that's failing when they're aware of better options, which is rather why Nintendo's "massive audience" from the NES (and to a lesser extent, the SNES) did not carry over for the N64 or GameCube. So don't expect brand loyalty to "save" the PS4 any more than it's "saved" the PS3.
As for if Sony can regain a position of dominance with their next system, that's very much hard to call. The wildcard is what Nintendo does, as their decision for the next generation of systems could easily make any effort short of a coincidental parallel to their decisions from the competition end up being moot. Neither Sony nor Microsoft shows any interest in actual innovation, so I don't expect Sony will be pulling a Nintendo and actually revolutionizing gameplay with the PS4; more likely it will be a souped-up PS3 with Wii controls (much like how the PS1 is a souped-up SNES with CDs and memory cards, and the PS2 is a souped-up PS1 with analog and rumble as standard features).
If Nintendo spontaneously returns to the methods that Hiroshi Yamauchi favored (that of producing a successor like the SNES or N64 instead of a new system entirely ala Wii and DS), then Sony will have an excellent chance of reclaiming the industry. Let's be honest, Nintendo does not do the hardball game well when their competitors are made of money. But if (and this is much more likely) Nintendo turns the industry upside-down again with a total curveball of a system that makes even the Wii's gameplay style look outdated, then Sony will be in trouble again.
Sky Render - Sanity is for the weak.
