All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger. We ask Allaah to exalt his mention as well as that of his family and all his companions.
Whoever obtains any device which could be used for good and evil, like a T.V. set for instance, then he is obliged to avoid using it in things that do not please Allaah, and he should prevent others from using it with his permission in the same evil manner.
If his heirs or other people use it after his death in the disobedience of Allaah, then he is not responsible for it, Allaah willing. Anyway, one should endeavour to cultivate his children to do righteous deeds and obey Allaah and forbid them from disobeying Allaah or breaching His Commands.
As regards the play station, it is difficult to get rid of some prohibitions which it contains, like music and forbidden pictures, like naked images. Therefore, it is not permissible for a Muslim to possess it as clarified in Fatwa 86106. However, you did well by not playing with it.
With regard to selling it, then it is not permissible to sell it as it is, rather it is an obligation to destroy it if it is not possible to transform it to something else in a way that one may benefit from it in a permissible manner.