Yes, that makes sense. The PS3 only has to significantly outperform the 360 at this point of time, Sony sold 1.85 million more PS3s than Microsoft sold 360s in an equal timeframe by March 2008.
The Nintendo Wii is a very different product which can easily co-exist with the PS3 within people's homes in the future. If Sony would have aimed to outsell the Wii, it would have put them into serious financial problems. Now the costs are under control well enough so that Sony tripled profits for its last fiscal year (PS3 also pushing more HDTV and Blu-Ray movie sales). The profitable PS2 sold well (much better than the 360) last year, this to compensate significantly for their PS3 market investments.
The PS3 is really built for a long term future, its processor holds more performance potential than even the top workstation targeted Xeon processors (this at much less wattage). It will also take a while until Blu-Ray drives are standard within the PC market. Expect Sony to push the PS3 much more when a cheaper profitable slimline PS3 is ready.
The current PS3 did what it had to accomplish at this point, win Sony the Blu-Ray format war, quickly reducing the 360's headstart sales advantage and push developers towards more efficient and powerful game engine design.
The current PS3 paves the way for the success of a future slimline PS3 and eventually a new Cell technology based PS4.
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