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It's far from doomed. The PS3 has the second best sales rate of the generation despite a very bad launch. If that launch did not hurt the Playstation brand in the long run then I'd say it's pretty healthy.

Sony has already said they want the gaming division to be a major part of their business going forward. It's where they see a measure of stability. I think the Vita will catch on in Japan, just like the PSP. In the west, we'll have to see. The PS4 has just as much chance as the other members of the market. History has taught us that success or failure in one generation does not automatically carry over into the next. It's a clean slate. We really have no idea which consoles will flourish.