NJ5 said:
I believe they mean neither of those. I think they mean selling the hardware at production cost. What I can guarantee is that they don't mean the last one you mentioned. Not even the PS2 in its prime years generated enough profit to cover PS3's losses so far (let alone doing so in a single year). This table always comes in handy.
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wow - MS is deeper in the hole than I thought...but thats a different topic for a different thread.
Proud Sony Rear Admiral