Cnet: How Sony is Killing the PS3

[theRepublic]

Kyros said:

Nintendo has always made money on their consoles.

Yeah and the last two generations they have been beaten down with a big stick by the Playstation competition that didn't do that. If they wouldn't have their hugely successful inhouse games and the profitable handheld business the Gamecube would have made a Dreamcast last gen. So that's no great advice either.

The problem is that if they loose out to the 360 this christmas we may start to see the crappy ports again that defined the beginning of this gen. Don't want.

Nintendo has always been able to profit, even in the N64 and Gamecube days.  Selling their consoles at a loss would have hurt their ablilty to so that.  That is very important since Nintendo is all about gaming, but Sony has other divisions to fall back on in case they do make a mistake.