I think the 3DS is going to crush whatever remains of the PSP (even in Japan) when it's released. As for the PS3 it's going to be facing much more fierce competition with some heavy hitters from both Microsoft and Nintendo as well as having to deal with Kinect.
I'm going to be completely honest and say that I think Sony may be in serious trouble now. They will probably have to take losses again on hardware and I think eventually the hundreds of millions or billions more in losses will cause Sony to clean house and probably cut studios and games.
It's not all doom and gloom though, for example if Jack Tretton is one of the casualties he could probably rebound as a car salesman. He has a real sincere quality about him that would really work to his advantage..
