| whatever said: There is a large cost for Sony to develop and market their software. |
Yup. Sony employs more developers than Microsoft and Nintendo combined. They are the third largest developer, behind EA and Ubisoft.
@OP: Sony wasn't losing $400 per console at launch, let alone for the entirety of last year. At launch, it was estimated that Sony was losing around $306 on every 20gb ps3 they sold and around $240 on every 60gb ps3 they sold. Since then, they've been cutting costs in various ways, including decreasing the size of the Cell, removing the ps2's Emotion Engine from the 80gb ps3s, and removing both the ps2's Emotion Engine and Graphics Syntehsizer from the 40gb ps3s.
And the cost of Blu-Ray diodes had come down well over a hundred dollars since launch as of last June. They were estimated to be around $8 a piece in June, compared to $125 previously. It was this that lead many to predict a $100 price drop for last year. Then the 40gb ps3 appeared in October.
