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According to iSuppli, the device costs significantly less to build than when it was first released in 2006, and is nearing break-even

iSuppli: Teardown of Sony's PlayStation 3

ISuppli estimates the Cell chip costs Sony:

$89 - 2006

$64 - 2007

$46 - 2008

ISuppli estimates the RSX chip costs Sony:

$126 -2005

$83 - 2007

$58 - 2008

The PS3 now costs $448.73 to build while selling for $399. So Sony make a loss of only $48.73.