Sony isn't dropping out yet. They already have their next console in the works, as does Nintendo. The only company I've heard no news about in terms of "new machine" is Microsoft, but that could also be because their current machine is competent enough to stand up to anything ole cheapskates Nintendo or Sony will introduce in the next generation. With all the money on R&D they poured into the PS3, it's amazing that it's barely on-par with Microsoft's same-gen console that came out much earlier. I may dislike Microsoft's war machine business mentality, but I've gotta give them credit for not only developing kickass game machines but also keeping things cheap for independents. Neither Sony nor Nintendo can hold a candle to this.
But anyways... don't count Sony out just yet. They still have over nine billion US dollars in cash assets alone, let alone the more than US$200 billion in total assets. They can afford to absorb the losses and come back stronger. And like also said in this thread, people will forget... and that's because the common person is a twat with the memory of a mosquito.