Sony breaking even on PS3/making profit 40gb PS3

[Bodhesatva]

Like others here, this information is so shocking (has any major electronics product ever been able to half its production cost in a year? Going from 800 dollars to 400 dollars in 12 months?) that it's hard to believe, but the really puzzling thing is that the same people who made this statement -- Nikko Citigroup -- also expect SCE to lose 1.4 billion this year, and that they will "not be prosperous until late 2009."

So, if Sony isn't losing money on the consoles, why are they are apparently still going to be hemmoraghing cash for a long time to come?