Sony breaking even on PS3/making profit 40gb PS3

[Bodhesatva]

RabidBunny said:
Again the cost of production and parts has been cut in half, this doesn't mean Sony is breaking even. Does anyone know the wholesale price for the 40 GB units? I would think it would have to be 299 to 349, but don't have a clue. For non game systems (like LCD TV, DVD Players, etc) the rule of thumb was that the BOM (Bill of Materials) cost (including manufaturing) had to 1/2 of the expected retail cost.
Rabid Bunny

They sell the systems to my store (Toys R Us) for 398.99. Most retailers can expect to make 1-5 dollars on these products. We make a killing on software, but on hardware like the PS3, we make virtually nothing. Therefore, Sony should be effectively losing nothing on hardware -- and yet, these people are still expecting Sony to bleed significant amounts of cash for another year or more. 

Why is that? Can anyone explain this to me?