Here is the quote from Kaz:
The first thing to note is that last fiscal year was FY09 which ended March 31, 2009. So Kaz is talking about the period from April 1st, 2009, until now -- the last few months.
Secondly, it seems that he's talking about the Playstation business, not just the Playstation 3. This would include the PSP and PS2.
Thirdly, he's talking about gross profit which suggests, but doesn't necessarily mean, that they're not profitable in terms of net. Perhaps this is difficult to measure at this point, but he would probably have not qualified it with a 'gross profit level' statement if it wasn't close.
Here's my summary:
At $399, the PS3 is still losing money. And it is losing enough that if you take the software, peripherals and profits, likely as well as those from the PSP and PS2, it is still not clear that it will be profitable on the whole, but it will probably generate a gross profit. However, at $299, and losing nearly an additional $100 per unit, that may not be a foregone conclusion.
If you look at Sony's fiscal results from the past two or three years, I think you'll see that my above interpretation of his statement is likely correct.