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Keep in mind that they are doing R&D on far more than just a ps3 Slim. They're always working on hardware redesigns for all of their products, and they're doing plenty of development on the PSN and ps3/psp firmware.

Then there's all the costs associated withe SCEWWS. They're paying for not only the developmentof new games, but the maintainence of servers and the like for old games. This last quarter was one of their weakest in terms of first party releases in a long time (only InFamous was released, compared to Killzone 2 and MLB 09: The Show the previous quarter, and a plethora of titles the quarter before that), so they had less revenue covering their expenses in this area.