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Kavitron said:
so what this is article is essentially saying psp and ps2 sales need to increase to stop sony losing money


No its saying that the inevitable decline in PS2 sales combined with the poorer PSP performance has taken a large amount of profit from them which would have hidden losses on the PS3 side in the past.  What you might hypothesize from the article is Sony would need to decrease costs further on the PS3 and continue to push PSP sales and further revenue from PSN. 

Sony cannot do anything to increase PS2 sales anymore, its in a natural decline given its age.  The PSP can be saved with some more aggressive pricing and marketing but its on a slippery slope still.  The PS3 market is reasonably healthy and provided they can turn a profit soon then will no longer be the huge drain it has been in the last few years.  Its not a complete doom and gloom article, it just highlights some things that might dictate what Sony could do if they aim to be profitable in the near future.