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I already posted this in another topic but it got closed (why?)

We are already making more money with the games than we are losing with the hardware

-> hardware includes PS3, PS2 and PSP.
-> software includes PS3, PS2 and PSP games.

They loose more on the PS3 hardware than they do on 'hardware' (PS2+PSP hardware profits - PS3 losses). Add the profit from PS2, PSP and PS3 games and they have a small profit as you could see in the results of last quarter.