Basically, what everyone else said.
I think Sony's going to fight really hard to have a profit next year, hence the low-balling of the projections, and them breaking even before summer is over. Expect great sales this Holiday, plus every PS3 being sold at cost, or making a profit, and strong software sales, could catapault them into making a profit FY 08-09. Don't expect a price drop anytime soon... People are buying them for 4/500, so why drop price?
MS on the other hand...







