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I think Sony are set for the next generation. PS3 is still far more advanced then anything on the market. Theres no need for a new format since blu-rays are rarely even being half filled. IMO Sony could find new ways to make the console cheaper, upgrade most of the parts (Ram, GPU ect.) and have a whole new online interface, and there console will sell well, as long as it doesnt retail for $600, and it doesnt get released TOO long after the other consoles.

 

As for their handheld and "PSP2" thats a completely differnt story. I cant see it passing 3DS, especially since its selling later. But I think it has potential to sell more then the first PSP