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Between May 2006 and Oct 2006 it got much worse. They revised their estimated losses to 200 billion yen. Then in January 2007 apparently they revised again to somewhere below 250 billion yen. So we're talking roughly $2 billion US in loss.

And that's with fairly decent PS2 sales. What happens if PS2 sales really start slowing?

http://www.bloomberg.com/apps/news?pid=20601101&sid=akC4ohHFOXS4&refer=japan

Tokyo-based Sony in January forecast losses at the games unit to exceed its October forecast of 200 billion yen ($1.7 billion) for the year ending March 31, because of price cuts to fend off the Wii. The loss will be less than 250 billion yen, Sony said.