Welp, if Sony goes down over this, it will hardly be the first time that a game company I loved pulls out of the hardware business. Anybody remember Sega? I do. I still have my Genesis, and while I went with Sony for the two generations following that one, the blue hedgehog, the green robot, and all the rest still hold a special place in my heart. The truth is, though, if Sega hadn't gone down, Microsoft probably would never have risen. If Sony pulls out of the market, we could very well have a new competitor in the marketplace within a hardware generation. Regardless, they screwed the pooch with this, and while it will make me sad to see them go down, it's not going to be undeserved. Besides, what I see as the worst case scenario is the videogame division closing down; people tend to forget that Sony is a general electronics manufacturer, not a videogame company like Nintendo. If I look to my right, I have a pair of Sony headphones sitting next to me. If I look at my shelf, I probably have a few DVDs which were either pressed by or contain movies made by Sony. I don't see an empire that large falling because one division has to shut down.
Edit: It would be like Rome falling in an alternate timeline because Boudicaa kicked them out of Britannia. It just wouldn't happen.