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It's not a matter if they are selling at a loss or not. It only matters if they can justify the extra expense with future profits.
No one can deny that more consoles means more software revenue in the future. If they can get that revenue in the future to cover the cost of the initial investments (sellign at a loss) then the only thing they need is cash to cover the initial costs and they can easily get that at any time.



PSN ID: T_Gears

End of 2009 ltd sales:

Wii = 67-68m

X360 = 38-39m

PS3 = 34-35m

Prediction: The PS3 will surpass the 360 on weekly sales after it drops to $299 on all regular weeks (no big releases).