Sony is selling the PS3 at a meager loss. Almost certainly less than $40. They'll start making a profit on PS3 hardware when the 45nm Cell revisions come sometime around June or July, according to David Reeves.
With the PS3 hardware making a profit, Kaz Hirai and Sir Howard Stringer will convince investors and shareholders that the PS3 is fully on track to recuperating its development costs. This will give them the leverage to issue a major price drop in Q4.







