PS3 production costs decreasing 70%... does that mean it's profitable?

[JEDE3]

Millennium said:
The same article that said the cost had dropped 70% also said it still cost about $400 to make. Therefore, Sony is not making a profit at the $299 price point.

oh please... the CFO never said it cost 400 to make. And Sony wouldn't go back to losing $100+ on each one sold.