The topic is similar to that of what if Nintendo went third party or drop out of gaming all together. It's good to have variety and competition from consoles.
I'm not sure what to think if Sony have dropped out. I'm mostly a Nintendo fan and care a lot more about their games and systems even though i have more than just Nintendo consoles. I have a PS2, but it's not like I bought and played all of the big time games it had, I only heard of games like Shadow of the Colosseus, GTA3, and a few others years after I no longer played on my PS2, which I used to primarily play sports game because that's what I was passionate about.
In the end, I still would've supported Wii U and 3DS because right now these consoles have given me great experiences despite what others have said about their specs (which really doesn't make much difference for me since power doesn't do much for me unless I'm interested in the gameplay).
Could the industry have declined without PS4? I don't know, too many elements. I mean, Vita is not setting the world on fire right now despite being superior hardware wise compared to the 3DS. Same thing if Nintendo were to bow down. I can't be sure. In the end, I'm glad Xbox, Wii U, and PS4 exist because they provide something different.
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