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NJ5 said:

Profit from hardware sales? Not sustainably, since they keep cutting the price to a value under production cost, and this will likely continue to be the case.

For example, now they're almost breaking even, but a price cut is needed... So the price gets cut, they go back to losing money, then after a while production cost goes near the price, but another price cut is needed again. Lather, rinse, repeat.

 

I think it is entirely possible that Sony might make the unpopular but necessary decision to not cut the price of the PS3 ... Marketshare is a great way for companies to brag but profitability is more important to Sony in both the short run and the long run.