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who said anything about selling the ps3 for a loss? If they could lower production costs by 500 dollars in 2 years by just taking BC chips out and shrinking the others im fairly optimistic that shrinking the RSX and using a smaller chasis, fan, power supply, and mobo along with shipping costs being lowered (a cost they have not saved yet) Ithey'll still be able to profit. if not at least break even allowing accessories and software bring profit.

If the yen also goes back to the normal '08 numbers then it would offset a good deal of the drop. It would be like Sony dropping the price 100 dollars to increase it by 50