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The point isn't profit, but saturating the market with a format in hope of Blu-Ray someday becoming profitable. But right now there is no arguing that Sony took a hideous loss on this deal.

As for the MGS4 bundle.

Take a 80GB SKU, make it more expensive by putting in full backward compatibility, then put in a $70 game as a loss to the SKU. Do you really think Sony is making money off that? Again, the point is not to sell the PS3 at a profit, but to just sell it period.