Sony will definitely make a PS4 the real question is will they make a PS5?

It's depending on Move.
If it will be successful, they will declare it to be the next generation.

If it won't, they will be forced to risk innovation through other means, probably in a way that involves completely new hardware, for example a graphical update. If they try this, it will be very very likely that the PS4 will be a stillborn console, with an even worse start than the PS3.

THIS is the smartest response I've seen on this thread and I agree completely with your sound rationale. 

The division that houses the Xbox was in a similar quandry.  Its not just about becoming profitable, its about recouping the initial investment.  Has MS done that even with the 360 yet?  I don't think they have.  They have a ways to go.

But, remember this story folks:  http://www.joystiq.com/2008/08/19/the-sony-reciprocal-ps3-losses-surpass-ps2-profits/  This was nearly 2 years ago and the PS3 has steadily been a loss for Sony since, so things are actually worse in the profit/loss column than they were back then.

Then again, as with MS as well, the gaming profits/losses are all hidden in larger divisions so all we can do is listen to official spin and outside speculation as to if either ever turn a TRUE profit.

Again, good post hsrob. 

I think a big thing with revenue for nintendo. Is that they make the software that sells some of the most  out of any software company.  such as New Super Mario Mario Bros, Pokemon. And several others that are around the 10 million mark. Not just licensing games.Sony's big games (I'd say are comparable in quality but to a different crowd). God Of War, Little Big Planet, Uncharted for example sell in the only 3-5 million range. While nintendo has lots of games, hell some of nintendo's lower quality games probably sell about that much.

Also, the hardware for PS3 was outrageously expensive, in costs for sony, although it basically secured the blu-ray market (now I know sony doesn't own all of th blu-ray IP or how exactly royalties work but I assume theres some benefit for doing so) which should also be calcuted into whether the ps3 made money, because without the ps3 there's no saying that HD DVD wouldn't have been the next disc format. (Yes digital downloads, could be the future, but I can't afford a connection that downloads HD movies reasonbly, but it could be possible in the future).

One last thing, is Sony, and Microsoft don't have all their eggs in basket of videogames like nintendo. Beings everyone knows what microsofts main business is. And I believe (not sure) the videogame part of sony is around 20%. It's the company's decision, of whether to come back or not. And they still have a significant market share, that if they do the next gen correctly and don't force losses on themselves on every console for the first 3 years. They'll be in profit land I think. :D

Sony has to get the value of the PS brand back. No one talks about Playstation as much as they used to. Bring it back to the casuals eyes.

You do know that NIntendo made more money during that time then Sony ever did?

So? did MS quit when Xbox1 lost them truck load of money + another 1billion for RROD?

http://www.vgchartz.com/forum/thread.php?id=109113&page=1#

Take a look @ that link funny how every1 ignored it while threads like "sony lost $X ammount" or "No ps4 for sony" is overflowing with ppl AHAHAHAHAHAH.

that has nothing do do with it. The fact is, sony's playstation division lost money for a few years in a row. And a lot. Just because they make money one year, does not make the whole console profitable. That is the argument, it's reasonable thought I'm sure Sony will make a PS4 or equivalent.

The argument is, why make a console if you lose money?

But there's obviously more factors than that.

CGI-Quality posted an article in a different thread saying Reuters Japan reported that PS3 was being sold at a profit from March (can't remember whether end of or beginning of). So it's possible GoW III was launched at a time when PS3 was turning a per unit profit. GoW III itself probably started making profit for Sony / Santa Monica at about the 1.5 million units shipped mark.

Maybe if there is a $50 price cut this year PS3 will swing back to a small per unit loss for another 4-5 months. But I think with SW sales and accessories, as a whole the PS3 stable will be making Sony modest profits this FY.

I have little doubt that there will be a PS4, but like others if PS4 has a financial performance like PS3 then the PS brand is sunk. Maybe won't be called "PS4", but it will be called PS something.

No my point is if a company like MS didn't stop from making the next box when their previous console(XBOX1) lost shit load of money aswell then why would Sony stop making Playstation because they screwed up for 1 gen? specially when now they are finally raking in profit of PS3....so are they just gonna forget that PS was on TOP 2 GEN in a row and just quit because they didn't do aswell for 1 GEN?