Sony has offered us no real evidence other than vague claims and promises that they will stop losing money at any point soon. They've carefully danced around the reality of the situation and tactfully avoided solid facts and proof.

Their job now is not just to sell the consumer on the PS3 but sell investors on it as well, so its in their best interest to spin the truth as much as possible. This being the case, their word can only be taken with a grain of salt.

This isn't to say there's no truth to their claims what so ever, but its doubtful they're fairing terribly well considering their claims, announcements and promises focus largely on short term goals, not the bigger picture.

I think another thing people need to remember about the whole cost of a Blu-ray player is that they really don't cost that much to produce. All Standalone Blu-ray players are sold at a profit, that's why they have so many company's on board producing them. The only HD play being sold at a loss would be Toshiba's I believe, and if you think about it that includes Diode + hardware components, whereas the PS3 just has the Diode. So I think it's safe to assume that the PS3's Big hit in profit isn't comming from that.

@HappySqurriel:

Do you understand, that in past gen era there was only ONE model of PS2, xbox and GC.
Pricecuts worked for each ONE model.

No matter what you say, but each PS3 model 60-80GB had only ONE price cut.
ONE model, ONE pricecut.
IT doesn`t work with TWO DIFFERENT models.

Though, there are a lot of models, all of them had max ONE pricecut.

Then again, NOBODY know, how much cost to produce PS3, even analytics don`t know for 100%.

I have to agree with you... But there r two things... my estimate doesn't show them having any sort of profit... Rather they r still loosing around 70 - 100 on 40 GB and like 50 on 80 GB model.

Secondly there is a huge cost of administrative expense, advertisements and game publishing and so many other things like free server services... So definitely these things do add up.

 But overall i think they r not in terribly bad condition either.. I believe they have manage to cut the manufacturing cost quite a bit and but they still need to go a long way to come in black cuz they need to lower the price further as 40GB model has shown them... The customer will only buy when the console will fall in its price range. So they have to bring one SKU around 250 - 300 range... and they can't wait a whole year either..

They had one model because having multiple models is stupid and confuses the consumer ...

Anyways, what I was saying is that the claims that the PS3 has had one or two price cuts are both misleading because (depending on your perspective) they are both correct yet miss a large portion of the complexity of the situation.