The crucial thing to bear in mind is he is referring to the state of things today. If we say for example they lose $50 on each console sold and they sell 10million a year that means they have lost $500million. They have however made more than $500million in the year from software sales (knowing Sony executives I won't be suprised if he is including software sales of PS2 and PSP).
But what Sony fans that are getting excited about this need to realise is that it does not factor in the R&D costs or the losses from last year when the console was much more expensive to produce. That money will never be made back this gen but unfortunately too many Sony fans are too divorced from reality to realise that.
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