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Unless you work for Sony, why would you care if the PS3 is profitable or not? For the typical gaming fan, all we should care about is if there are good games on that system or not. You could build a cheap system and sell it for $50, but if all it has are crappy games, then I'm not going to buy it just because it's cheap. Similarly, if a console costs $400 but it's got a strong library of games that I want to play, then I rather invest in the more expensive system. Yes, cost is important, but the quality of the product is equally important to me. Why are some ppl willing to dish out $60K to buy a BMW when they could spend 1/3 of that and get a Hyundai? Because some people prefer quality over affordability.