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DonFerrari said:

.....snip slightly overoptimistic profit calculation

I think we should add a few frontloaded expenses that change your rosy view:

a) Cost of making prototypes. Given how extremely expensive a large 7nm design is (currently), and assuming Sony actually has some working prototypes of PS5s (i.e. they are not high-specced PCs, we can very roughly add >=500M for developing the SoC (and whatever goes with it, peanuts in comparison to the SoC).

b) Every mask failure adds xyM costs to the development cycle.

c) Making, say, functional developer units at 25k a piece adds another xyzM to the bill

d) Final masks for the PS5, producing an initial run of consoles = 100M

e) Actually paying for PS+ (Sony gets a fraction of what you pay with your PS+ subscription, most is for renting hardware/maintaining own hardware and software people)

f) Adjust for money you don't actually can invest if you sell consoles at a great loss instead of break-even on it.

g) All the stuff I forgot to add to the list (like demo units for shops, etc, new surround heaphones, PSVR2, etc. etc.). The list would probably go to z)