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Sony would be bankrupt. They would lose even more money than they would have with the PS3 and would be dead by 2008. Nintendo would still be banking billions and would have gotten tons more 3rd party support because Sony would be dead.

Unless OP is referring to just PS4 launching in 2013 at $250. They would still be around, but would be posting crazy losses. It would be the second coming of PS3 and be a disaster. They would be in trouble now.