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Zim said:
People need to remember that the $3.5billion loss is for the gaming division as a whole. It includes the profit PSP and PS2 made those years. The PS3 also didn't start costing money the day is was launched. Previous years there are also R+D costs. It would be a pretty fair estimate to say the PS3 has lost at least $5billion over it's lifetime and made very very little of that back.

My guess is next generation sony will be a software only maker (Or I guess a chance the PS4 will be a budget console, after all where is the money for R+D going to come from?). Which would surely be the best situation for everyone. 1 innovative console, 1 graphical powerhouse, sony games would still get made, it would help sony out finanically in a massive way.

The total costs of R&D of PS3 is not included in Sony's financial statements. According to the financial statements PS3 losses are around 3 or 4 billion dollars. The PSP and PS2 revenue slightly offsets the PS3 losses.
If we added the costs of R&D to the PS3 losses than we are talking about X billions + 4 billion dollars in losses attributed by PS3.