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During Sony's live broadcast he was asked when PS3 hardware will be profitable. The reply was that if current foreign exchange rates continue then with the introduction of 45nm they expect to see improved margin and profit during the latter half of next year. He was asked if he meant fiscal year or calender year, but unfortunately I missed that answer, I also think he said 45nm manufacture had already begun, but I'll have to wait for the recording which will go up 30 minutes after the end of the broadcast.