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Andrespetmonkey said:

$50-100 losses is not a problem, Sony will only be in trouble if they get upto around $200 I think. Microsoft could afford to eat $200 if they really wanted to try and dominate Sony and maybe Nintendo.

Sony isn't what it was where they can do a loss leader to push out competitors.

Loss leader strategy is so deeply ingrained in Sony though, I would be surprise if they sell any new console at a profit.

So, they are pretty much stuck between Nintendo and Microsoft. PS4 will be between WiiU and Xbox3.

Loss leader does not guarantee anything, as proven by PS3. So, they still could beat Microsoft with games, games, and games.