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Kissinger said:

The PS3 doesn't need saving but the PS4 might if things keep going the way they are.  How will it survive if development costs double and PSN and the hardware itself are making almost no money or even losing money?  Will the PS3 and PSP2 be making tons of profit like the PS2 and PSP were to save it?  Doubtful since the PS3 is finally just breaking even and now Sony has to cut price or give rebates in order to compete with competitors that have systems that are cheaper to produce.

I'll be honest, people will ignore or deny what you say as relevant but you are just hitting the nail on the head with Mjolnir here!

Nintendo will likely never disappear because gaming IS their business.

Microsoft makes so much money from Windows and Office that the gaming losses never really affected them that much and the Xbox business is now profitable (this gen) and great PR for the company (the accolades of Kinect in mainstream media cannot be downplayed).

Sony ....... just think about this.  To sell upwards of 100 million consoles for TWO generations as the pride and joy of your entire company and then have just one console completely and thoroughly wipe out all profits from those two generations looks EXTREMELY bad to stockholders.  Now, with 3DTV's (in their current form) looking like something that will never be profitable, losses in gaming hurt even more.  Sony NEEDS gaming to be profitable, and its been far less than that this gen.  Sega proved to me that companies in such a situation ARE willing to make the tough decision no matter how acclaimed their product is if they are losing money consistently and can't afford it.  Being honest, can Sony afford something like this gen to happen again?

Good post, man.  Brave too.