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I think the console is close to being profitable, being that it costs just over $400 to make and is being sold for $399 so given the fact Sony is about to implement the 45nm tech in the console for the CELL and also 60nm tech for the RSX then this should bring down costs dramatically and thus make them some profit, unless they decide to make a price-cut which would likely eat up any profit made by the console right off the bat!

Considering the console was $800+ to produce come launch i think they have come on leaps and bounds to make the console that much cheaper to produce and this will continue into the future until the inevitable PSthree!