I'm sure Sony makes a profit on PS2 hardware by now. Although at $130, maybe not a huge one. They've got to be dirt cheap to manufacture.
The PS2 business should be pure profit, profitable hardware and should be lots of software with 100 million PS2's sold. So the fact Sony's game division is currently losing a lot of money just highlights how much PS3 must be losing, to offset PS2's profits.
But yeah, if they only cleared 2bil on PS2, the most succesful console ever, it really does call into question how much MS and Sony can ever hope to profit on these cyclical ventures. Of course, both companies hope to use game consoles as trojan horse set top boxes where you download movies, etc, as well. So I guess in a way, profit can be looked at as gravy.
BTW, it's really looking like Blu-Ray is not going to win the format wars anyway...HDDVD has been coming on really strong lately. Today there was news that Wal Mart has ordered 2 million $299 HDDVD players for this fall. That's just another blow to Blu-Ray.
