Yuta Sakurai, an analyst at Nomura believes that in dropping an engineer like Kutaragi from day-to-day management of PlayStation and the promotion of Kaz Hirai and David Reeves is a sign that Sony is shifting its focus from hardware to software.

"The appointment of Hirai could be the start of a shift from hardware to software," said Yuta Sakurai told The Financial Times. "I cannot now imagine a PlayStation 4."

Source

After the billions in losses over the PS3, I wouldn't be too surprised.

Billions is a bit of an exageration, don't you think?
And anyway Sony still has everything else raking in money from TV's, music, computer programs.
Sony is here to stay I think.

Billions is a bit of an exageration, don't you think?
And anyway Sony still has everything else raking in money from TV's, music, computer programs.
Sony is here to stay I think.

They said they lost $3.3 billion because of the PS3.