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JEMC said:

@Viper1: I forgot about exchange rates when talking about Sony's ability to launch hardware at a loss. And that makes their situation even worse than I thought.

And maybe that's why the rumors about the PS4 talk about an AMD APU paired with a "low end" 6 or 7xxx card, to keep the costs lower than it would be with a customized CPU and GPU, while still being a good improvement over the PS3.

It looks like Microsoft is the only one that can go the powerhouse route again given their low sales in Japan (so a minimal lose) and that using the $1 = 1€ exchange will make them gain more money from Europe.

While I haven't taken much stock in it, there is at least one recent rumor that MS has decided to forgo the original Power7 CPU and follow Sony's similar approach with an AMD APU for the same reasons. I'll wait for more rumors before I start thinking it has weight, but just wanted to toss it into the discussion.