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

[NJ5]

Xxain said:

JEDE3 said:
lol slime - Sony wasn't losing 100 on the phats. They wont go more on the slims. And NJ5 also said sony would only drop the price 50 dollars this year.

thats what I dont get...they were losing 40 bucks on Phat soooo how are they losing more on something thats cheaper to make???????

Because they decreased the price by $100?