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mrstickball said:
Sony is roughly breaking even on every PS3 sold once you take in everything to consideration: manufacturing cost, shipping, retailer incentives, ect.

However, it's a lie to think that the Arcade is not making money, when it most likely was when the price dropped to $199. Microsoft has made a profit in their gaming division for the past year+ straight, and Sony has posted a loss just about every time. That tells me that one system is profitable, and the other is certainly not.

Not necessarily true, they could well (are almost certainly) losing some money on hardware, but making it up with software sales