If Sony quits the videogame industry this means Sony as a company is on the way to a horrible death. Sony in it videogames for the long haul and its a primary money maker for them, much like Nintendo even though they have other things they make money off of. The Loss of the SCE sector would be a shot a shot in in a vital part and would more than likely spell the end for Sony. This is why they pour so much into so many games. Where other electronics have fallen their gaming sector just grows and grows.
I think if Sony died Microsoft would become bored and uninspired but would still try to continue their struggle for dominance of the living room. They would most likely keep nearly every third party away from Nintendo as well so Nintendo would be cut off from the major gaming audience. Nintendo wouldn't be able to play they money game with them. Nintendo would be forced to go into 100% survival and profitability mode off of first party.
