First Question: I have not checked the numbers because they are not updated enough around here BUT has Sony really spent the entire year ahead of the 360 only to lose the lead in past month or so? And if not is there anything that would make you believe that they are going to come out on top?

Question 2) How the hell is it possible that Sony makes so much money and has great products with great reputations for quality but has been reaping in a loss every year forever it seems like? How are they still going?

1)

lets see what happens,January will bring out the official sales numbers from all 3

VGC has bad tracking in other parts of the world which leads to difference but every-time official numbers come out VGC adjusts its numbers and then PS3 comes out on top.

VGC's number of PS3 are way below as SONY has projected 15m for this Fiscal year and they have said that they are actually ahead of this numbers but VGC shows that SONY will most likely not be able to make it so there is definitely some tracking problems

2)

Sony's big numbers are revenue(total sales) which differs from profit or loss.

Also the strong YEN makes SONY earn less on every product sold out of  JAPAN as currency exchange rates coem into play

As for SONY sustaining it,SONY is a pretty big company so they have alot of money from the past and also it borrows if it needs more and because it has such a great brand,lenders loan money easily.

Sony lost $7b on PS3 from its launch but has been profiting from Q1(Jan-Mar 2010).Its recent losses have come from earthquakes,currency exchange volitality and R&D.

1: SONY is still 0.8 million units ahead of 360, 360 won't pass.
2: SONY only started making money on the PS3 around 2 years ago, and while their gaming sector is now very profitable, they have a huge range of other electronics that are losing them money.

How do you know it? Sony don't provide this type of information.

Sorry, I should of said: I think their gaming sector is probably very profitable*

this .

the division that's really hurting them is their TV. brand (correct me if i'm wrong snake) Sony was set to make a profit this yr., before the hack and earthquakes happened. most of Sonys divisions are seperate divisions, but what i'm not sure of is are their movies and music divisions (entertainment)making any money?

a company that's made profit for yr.'s would have to have money stashed away so i wouldn't worry to much.

PS3 contributed to their losses this yr., but only do to the pricedrop, yet that division is making money, and their losses don't come from that division and, it seems as if the PSVita although selling at a loss will, will profit from the software selling so well at this point. digital sales are already exceeding expectations and i believe Vita only sold just a few hundred less then 3ds in Japan in it's only 2 days on the market.

as far as hardware sales go, yes it's true PS3 kicked ass from Jan. to Oct. but Sony has not lost yet, infact i expect  the gap by yr's end to be 500k after adjustments, and it still looks like(with vgc current numbers) that PS3 will finish 100k-200k a head of the 360.

VGC is showing 360 leading PS3 sales 160k-170 a wk, and with 2 wks left in this month to report, if that trend continues then the gap when vgc numbers come in on the first wk of Jan., the gap will likely only be 300k. 

Yes they do, look up their earnings reports, the break it down by division

follow the financial reports,they break it down.SONY is making a profit on PS3 from Q1 2010

yeah the falling TV sales are hurting badly

the movie and music division are making a profit

and PS3 is not making a loss even after price-cut.Sony is not gonna lose on PS3 anymore.They can cut PS3 price again next year and still not lose.

this year sony losses are due to:

TV division

Earthquake

Sony ericsson purchase

fabrication factory and other purchases

PS VITA hardware(very small loss or maybe they have broken even)

R&D costs(this are yearly cost every company bears but are covered by profits but sony can't cover them because of other loses)

Stron YEN against other currencies

1. MS saves their big guns for holidays. Holidays > Jan-October

2. High yen leads to sales in other parts of the world bringing in losses. They also sell their products at a low profit, if that. 

But these past few years...Sony thinks its better to get market share (unsuccessfully) at the cost of profitability.