""The next fiscal year starts in April and if we can try to achieve that in the next fiscal year that would be a great thing. We are going through the budgets right now. That (profitability) is not a definite commitment, but that is what I would like to try to shoot for," said a confident Hirai."

 The bold is what caught my eye.  They haven't got their spending plans nor estimated income finished yet for fiscal 2008 (ending in Mar 2009) to know if it is even possible to have a profit as gamerace pointed out in his post. 

"Hirai noted falling production costs and a strong software line-up as key factors to help SCE turn over a profit on the high-end console. " 

Based on that, I would agree with elnino334 that the PS3 profitability includes the game sales and probably PS3 royalities.  I would disagree that the time frame for profitable would be this April, the first month of their new year.  Most likely planning on in Nov./Dec. of this year during the holiday session.   Only to show any profits for even a quarter, it's going to be hard to do if there is a price cut(s) this year of any meaningful size.

Add to this that the huge losses calculated on materials were related to components bought before production started. The initial component stock is certainly exhausted, so, for example, Sony is buying hard drives at prices enormously lower than the initial ones, especially the 40GB units, that now are "bargain bin" items.  The BD unit other than for the blue laser diode, should now cost less also for the rest of its HW. Add to this the savings started on the Cell CPU as soon as they started using the 65nm process ones and also the fact that after producing millions of units also savings due to the refinement of the manufacturing process start to kick in.

Add finally to this the higher prices and poorer equipment in EU since the beginning and the result is that perhaps in EU they have already stopped losing money on the HW.