If Blu-ray, PS3 and PSP all bombed, I'm not sure what would happen. I don't think the company will go out of business, but it may have to shed some weight. The gaming division might be cut back, but I think there would at least be an attempt at a "Playstation 4". The name might be changed, but Playstation and PS2 were big money-makers for Sony most of the time, I think they'd try once more.
I'm not sure about PSP...Sony might attempt a PSP2, but they'd better have a new strategy for it.
Actually, odds are PSP2 and PS4 are already both in development. I hope Sony is evaluating what needs to be changed for them to perform better than the current systems.
Speaking of Blu-ray and bombing, I don't think it will fail because of HDDVD - if it fails at all, I think it will fail because of consumer apathy. I'm not convinced the public feels the need for high-def movies yet. If they do, I think Blu-ray has a decent chance of winning, at least it seems to be in the lead so far.
Edit - HappySquirrel's comments: I don't know why Microsoft didn't go with that technology, but in the other two cases, I think there are "good" reasons. I don't think Nintendo really needs the extra space that badly since there's no need for HD visuals on the Wii. As for Sony, the company obviously wanted PS3 to be a trojan horse for Blu-ray...and it's kind of working, thanks to PS3, there are far more Blu-ray players out there than HD-DVD players...but it has possibly come at the cost of Playstation sales.
