Well, the Entertainment Division should get a nice boost next quarter due to Amazing Spider-Man's success last month, so that'll help. From everything I've read, Sony's gaming division was once again one of the least badly-performing divisions of the company, and I'll wager a great deal of that loss is the Vita.
Sony needs to get some developer support for the Vita, and they need to drop the price. The Vita's a great handheld, IMO. I enjoy the experience of playing games on it more than on my non-ergonomic 3DS, but right now I like the games so much more on the 3DS. Sony has just committed boneheaded mistake after missed opportunity after unbelievable screw-up when it comes to handling the marketing and software support of that device, and at this point the damage done to that brand may be terminal. Maybe Assassin's Creed 3: Liberation and the Vita Call of Duty game will give the handheld a much-needed shot in the arm in the West, but they need something on the caliber of Monster Hunter Exclusivity to get the Japanese excited.
As for the PlayStation 3, despite all the mistakes Sony has made with that console since launch (yes, including the hacking disaster last year), I really can't blame them for how the console sales have dipped. Console sales in general have plummeted compared to last year. And aside from the PS3's security, they've done just about everything quality-wise I could ask of them: PSN has evolved into a strong digital distribution and online gaming platform with a good selection of exclusives and sales, and there's plenty of software 1st party and otherwise that interests me. But for whatever reason, Sony's best efforts rarely sell on the level of even a Microsoft 1st party title. When you consider that meanwhile Nintendo tends to make money hand over fist with certain IMO significantly less interesting games extremely reliant on nostalgia, I don't know what Sony could do better in terms of software.
I think the PS4 is going to be the make-or-break device for Sony as a gaming company given what's happening with the Vita. If they come out strong with a great selection of software; the hardware is reasonably priced; and there's no stupid B.S. with the marketing or accessories (like there is with the Vita and it's price-gouging memory cards), I think they can succeed (especially if they beat Microsoft to the market next-gen). I hope they succeed, actually, because Sony has some very strong franchises under its belt, and they clearly have the studio talent to create strong new ones next generation. But if the PS4 fails like the Vita has, Sony's probably done as a 1st party platform holder.
However, I do believe for Sony to recover that they're going to have to shed the dead weight from the other divisions. This economy is showing no signs of recovering any time soon, so I doubt people are going to be buying expensive TVs/etc. like they did in the last few decades for a long time. And in the meantime, that's just going to keep them in the Red.