If instead of record profits they have massive loses they shut down the division, the company or focus on something else. Thanks to the PS4 insane profits/revenue, the gaming division is now the main Sony division, which means that obviouly they double down their efforts there.Again; not how profitability works.
It just means Sony figured out how to profit off of us better this generation than in past generations. Only they know internally how that profit happened and what it is encouraging them to do in the future. They'll reveal some of that on investor calls but it's far more complicated than "wow we should do more of the same!"
Celebrate the decisions that benefit you, not the profit. Some of this profit compared to past generations came from the cheap jaguar CPU this generation started with... PS4 was a great system compared to Xbox, but being more profit minded on hardware was not a benefit to consumers this generation or something for us to celebrate.
I'm not saying profit = bad for us either. It's just not that simple; and I still find it kind of hilarious either way because more profit literally means they figured out how to make more money off of you lol, it's not even at face value something people should be cheering.
One of them is to graw their game development studios (which means they make more and/or better games) and to buy new ones, and they more or less recently did with Insomniac, and plan to continue doing as Ryan recently said. In addition to this, it also means they put more effort on securing third party exclusives of all kind: total, timed, on console, marketing deals (which often means some benefit like having a console bundle or some extra dlc), etc. All these things benefit us.
In hardware they are going to release a badass console with the latest CPU, GPU, SSD, wifi, Bluetooth and USB technology that will mean a big upgrade since their previous console, plus a cooling solution that should solve the fan noise issues experienced, plus has a full PS4/PSVR BC. We can't ask them a lot more (maybe PS1 & PS2 BC, because PS3 wouldn't be realistic). Probably without all the profit they would have chosen something more conservative, not chosing all the latest stuff and would have bet on something more directly profitable.
Their profit benefit us in all areas. Sega didn't have profits so they had to exit the videogames console race. Many game development studios or publishers had big loses so they did end shutting down or selling. So yes, we need them to be profitable and it's good news for us when they are because it means they will continue providing us good games.