Ok, so looking at the news of Sony laying off 16,000 is pretty grim. Figures I can find say that Sony currently employ around 160,000 staff. So that is a 10% cutback which is truly massive.
Now, if a company the size of GM can face the potential of going under - then the same applies to Sony. Obviously Sony wouldn't get a government bailout.
So let's look at the hypothetical question. What would happen to the console market and gaming industry if Sony went under?