Sony is a format leader, which means their formats affect the outside market. They are always on the forefront of popular formats and helping widen out the products marketshare, so no. They will always be needed for hardware. What Sony needs to do is drop the Vita and restructure their business. The gaming portion of Sony does not carry the massive amount of weight as Sony as a whole. In order to increase their value they either have to rebrand, change the valuation of their products and drop dead weight products (IE: MP3 players and possibly Cellphones).
Sony will always have my respect because they are known for taking huge risks to push tech. Problem is they don't have the proper pricing or marketing strategy to back those things up. They need to start thinking solely about profit now for the majority of their electronics.
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