Sony lost billions trying to keep the PS3 from losing market share. But they lost that market share anyway and have nothing to show for it. Sony probably should have sold the PS3 for $700 or $800 and even then they would still have been taking massive losses. But they wouldn't have lost nearly as much as they did.
I'm pretty sure that if we could ask Sony today if they would have launched the PS3 the way it was and they would say no. It just wasn't profitable.