Microsoft: They don't need to make a profit on this generation. They're far less in the red than they have been previously so if they don't make a profit on this one, chances are they will on the next one. This is doubly true if their next console proves not to have hardware hangups.
Nintendo: They can squeeze profit out of any console it seems. Even at the bottom of the barrel they're still churning out a profit. The Nintendo DS alone is strong enough to float the company I think, but with the crazy Wii sales... well, let's just say Nintendo may need a few Money Bins for various holding and swimming purposes.
Sony: They don't have the deep pockets Microsoft has nor the bizarre ability to profit from just about anything Nintendo has. Compound that with a weak market position and the situation doesn't look too good especially coming from such a strong position as they had with the PS2. Still, they're not novices to this business so it's foolish to count them out too soon.
In total, Sony is standing at the edge of doom, Microsoft is standing right behind Sony trying to give it a push, and Nintendo is watching the two slap each other silly in the comfort of its own mansion while counting its money and listening to Mario jingles.
