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"And no, making some older games free would not translate into much profit. They might win a few new customers because of that but most of those would be people who would just play the free offerings."

Or at least people that would buy ps3 ( and possibly a ps4 after that ) just to play the free psn catalogue. And I do not think that would be just "a few" if you ask me.

You buy a ps3 for 250$, you have no game. You buy a bundle for 270/299$ you have one game, whoooh.

But here, with "this" solution you buy a ps3 for 250$ and you get plenty of games for free. Killer argument imho. Ps3 owner have great chance to buy a ps4 in a short future if they're happy with their actual ps3 system you know.
And we all know people will take all their time to jump into next gen, ps3 will still be the sony way to go system and profit maker for quite a time.

If you still fail to see how profit can be made from this...