@ johnsobas
I don't care what you think, I just share my perspective which originates from well before the PS3 launched.
IMO it was obvious they would loose a great deal of money. I think some within Sony may have been more shocked that their gaming division generated a profit for the last quarter of 2007.
I know the Final Fantasy managers said they were shocked by the PS3's low market pricing. It's clear Sony is planning to go all the way on this one, willing to digg deep into their pockets.