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The point here is while they may not be making profit soon, they are DEFINITELY NOT losing "huge amounts of money" any more. And with strong sales of PSP and PS2 ( i know not Nintendo strong, but strong) they are in much better position than we all may have thought.

What it means to me?
The "ideal $299 price point" is well within their reach, and if Xbox360 does drop price to 199, Sony can react. I doubt they will though. I still see core eliminated, Premium to $250, Elite to $350. PS3 may or may not drop price until end of year if thats the case.