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"My point: you can say that Sony is losing money with its game division. But saying that the PS3 by itself "is going to lose them money" is unproven, most likely false."

PS3 loses are greater than it's game division because it can be assumed that the PS2 & PSP are making a profit. That's certainly been the case for 3-5 years now. Therefor the PS3 losses are so great that it's probably beyond the point that it's possible to make up in the future. The only way Sony could come out ahead is by making big profits on Blu-Ray. (which is doubtful)