There will probably be one more maybe 2 REALLY big loss quarters for Sony and then it will either be minor loss or minor profit in their games division.
Not only did it cost a shitton of money to redesign the PS3 slim, they still lose a pretty big chunk of change with each console sold. As for the profits on the software end, I don't think its near what a lot of people think it is. Like it or not the majority of the time it takes longer to develop and ship a game for the ps3. All of that takes a lot of money and sony has a lot of software houses that they have to maintain payroll no matter if they have recently released a game or not.
Take into account that the longer development process and then the fact that a lot of software companies are losing a hell of a lot of money on their own or going under(not first party). Its easy to see that profit lines are not as good as they once were in the PS2's hayday.
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