SlorgNet on 06 August 2008
Sony is making money in Europe, no question. All the major consoles are produced mostly in China, which has seen its currency appreciate slightly vis-a-vis the dollar and decline slightly against the euro.
I'd caution against assuming the PS3 still costs $500 to produce (my guess is, they hit $400 this spring and will hit $350 this fall). Sony moved very, very aggressively on cost-reduction - as a hardware company, this is what they do. Right now, any losses they're making are a result of marketing expenses and rising shipping costs, but those costs hit all the console companies equally.
