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You gotta be kidding me, before the PS3 the Playstation brand was making Sony a huge deal of money. Every company has a hiccup and with Sony it was the PS3 however even so it will at worst sell 40 million lifetime. It has lost a huge amount of money but the money can easily be made up, just have a look at how much the gaming industry is growing.

PSP is at worst going to end with 70 million sales and PS3 40 millionso not a ZOMG failure. Look at how much money MS lost and just started making money recently. People are taking too many magic mushrooms if they think Sony are bailing out on hardware.