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You all really think that Sony doesn't make money on the PS3 when you balance out the cost they are losing per console (remember the new SKU) vs the amount they are making off of PSN and disc based software sales?

I think you all are wrong on that. I'd say Sony is losing at most like $15-20 per console sold. I think now, at the $399 price point and with the newer 80gb model that the PS3 as a business alone is making money. Maybe not very much money (under 50 million), but making money nonetheless.