Yes, Microsoft has stated that this is the quarter of the year they will be making profit.

Very nice, very nice.
And sony are they making money on the PS3?

Not that I know of, but with the addition of the 40GB PS3 and they took the PS2 Graphics/CPU out of the system, and added a 65nm CPU chip in place of the 90nm CPU chip. Wouldn't you think they are making profit?

I really don't have a clue that's why I ask it^^

No. I estimate that they lose at least $200 on each 40GB and maybe $150 on each 80GB sold, based on aggressive cost reduction since the $810 estimate at launch by iSuppli.

You know the losses we saw at Sony's last financial report? That was better than expected. If the PS3 had sold what had been expected of it, the losses would have been higher. The downside is that Sony may never enter the black, especially when Xbox 360 and Wii pass $199 as is inevitable so the PS3's price has to be dropped again.

Basically what your trying to say is Sony is going to be like how Microsoft was last generation with the original Xbox: In red for the rest of the generation.

@kirby - no, sony is not making profit currently.

@Grimboyjr - agreed, i'm excited to see the numbers in january to see who is going to maintain momentum and who won't.

What exactly is your estimate based on?  Would you care to share exactly how you are coming up with that number even though you have no idea exactly what Sony pays to either make or purchase components that go into the PS3?

 I do believe that both the 40 and 80gb PS3's are losing money, but not near as much as you suspect it is.   I think that the 40gb is losing in the 60-100 per unit range and the 80gb is losing closer to 25-60 USD.   So many of those who like to talk down about Sony and how it will fail and never make a profit on it forget that many video game consoles rarely make profits at all in the early stages of it's lifetime.  The Wii is an exception to the rule.    And I don't think that the PS3 would be far behind the 360 in dropping the prices to the $199 price point.  Depending on how agressive Sony wants to be, they could even beat MS to the punch at that price.

 When using state of the art and top of the line products, the costs to manufacture drop considerably in the early stages of it's life and can drop faster and further then other consoles because of the manufacturing costs dropping with improved production techniques.

 You gentlemen seem to forget that regardless of the lowest price tags in history, very few people wanted an original X-Box, why should the 360 be different?

The 360 has an image issue; it's an American product and will never shake that tag or overshadow it with any amount of great games or low prices. I don't think 360 sales will surpass X-box sales by much really. 

According to iSupply last year, the PS3 was losing around $140 per console for a 60gb, and around $190 for a 20gb, using the $500/$600 price models.

For the Xbox 360, in 1 year, it reduced it's price from $513 to $350 between Nov 05/06.

So for the PS3, if you used a similar comparison, it *should* be around $503 USD for a 40gb model. Now, I have no idea if that would include, or take away the fact that the BC chips were yanked on the new ones.

So I'd say Sony, on a 40gb model, is losing anywhere from $75 to $130. This is based on a $50 reduction for the BC hardware and software at a minimum (plus $25 for shipping and other expenses not included in actually producing a PS3's hardware), upto $130 if the BC wouldn't effect my formula.