There is no doubt that Sony has faltered in the last several years and is losing ground to more innovative companies such as Apple. However, there is at least some reason not to discount Sony quite yet.
The Wall Street Journal has a great article outlining Sony's intention to innovate internet-based TV. Howard Stringer (Sony's CEO) has also mentioned a innovative new line of television sets, which he claims will claim a premium price, restoring profitability to the ailing line.
Of course, we've heard these claims before. Apple tried and failed to negotiate with content providers over a more integrated set of broadcast channels to provide via the internet. Will Sony succeed where Apple failed?
We've also heard rumors that Apple is creating a Siri-voice recognition powered television set for the 2012 or 2013 market, so will Sony's new television be ground breaking enough? The path is certainly not clear for Sony, but there is at least a couple reasons to believe that they haven't checked out of the race just yet. Of course, going toe-to-toe with Apple in gaming may get even more challenging in years to come, further emphasizing Sony's gaming decline. It should be an interesting show!