How would Sony's money losts effect the PS4?

no offense but this is simply as u put it, what you "feel" they would do. but Sony's history proves that they are definitely willing to put insane budgets into gaming which will likely end up in more losses. and your confidense that they will never run out of money is misplaced, far bigger companies than just Sony have gone bankrupt, an airway recently went from very rich to totallly bankrupt and shut down a few months ago, Sony is a very likely candidate for the next big company to go bust, they consistently make all the wrong moves

No offence taken. I feel that we are taking Sony as animals that can't even predict the economy. They are more intelligent than we think. They will shut down their gaming industry before they loose the entire company. They survived for this long for a reason and that is because they are good with this kind of stuff. They are just really stupid when it comes to gaming and when they see a opportunity to make money they will be the first to take it. So if that means to create a cheap crappy console, then that is what they will do.