I'm not so sure.  I mean the PS3 has a lot farther to fall since the tech is more advanced.  So it's decreases in cost are going to be a lot more signficant then the 360's decreases in cost.

The Wii technology... i'm not even sure how much cheaper it can get. 

Well, this is very surprising... They cut the prices by 200 €/$100, yet the PS3 loss was dramatically reduced from the previous quarter? I wonder if the inventory write-down was done with the planned price reductions, if that's not the case then I don't have an explanation.

for THIRD QUARTER ended Dec 31

2006 3rd quarter: 54.2 billion yen loss

2007 3rd quarter: 12.9 billion yen (or 12.9 million dollars) income

This is operating income, not sales revenue 

However they didn't put it after Electronics, Pictures or any other profitable segment. Is it because they posted a loss last quarter and as such have to refrence it?

Edit: Ah i see it know.  The loss part is refrenceing the 2006 stuff.

Still either way, great news for Sony.  Lets hope it continues in the first quarter after the X-mas boost.

 Analysts can be wrong en masse as well. How many analysts predicted the Wii to win this generation? Very few.

When was it that the 360 became profitable (After the 1 billion for warranties)?

Most tech price cuts come from shrinking the process and that's available to MS and Nintendo just as much as it is Sony. Sony does have the advantage of Blu-ray dropping though. Both Ninty and MS rely on pretty cheap optical tech already.

MS' H&E division started turning a profit last quarter (ending Sept 07) and that's probably when the 360 became profitable.

So MS took 1 3/4 years to turn a profit, Sony only 1

Dude, try reading the rest of the report.  Everywhere you see parenthesis that means money was lost in that sector for that time period.  Only that time period.  Look at the Cash Flows section of those charts, what you will see before that is either (loss) or (used for), and that is becase at that time, and that time only, that sector provided a negative income.  It happens throught the report.  In some points, such as the Cash Flows section, there are times when both tiem periods mentioned have their numebrs in parenthesis.  At those times, they lost money, at any time when a number is not in parenthesis it has thereby been stated, unequivocably, by Sony that a profit has been made.

Ergo, Sony made a profit last quarter. 

And that made me giggle, because of all the people who simply couldn't believe it was possible.  I have laughed at the people who keep saying "Sony can't afford ____" over and over again.  Every few months, in fact, Sony gives me something to laugh about.  It's like they sabotaged themselves just so they could tell people that they did the impossible.  They cut prices impossibly fast, they cut costs impossibly fast, they made profits when their supposed losses made it impossible.

Impossible.  Impossible.  Impossible.

That's all I hear from people who, like you, simply refuse to believe Sony can do what it does.  That in the face of them doing it longer than you've been alive, to boot.  Granted, they've had their failures.  Every company does.  Yet a bunch of people sitting around chatting in forums think that, in many cases with no business education, they can actually determine what a massive company like Sony is capable of.

Well, here ya go, naysayers.  Sony won.  They may not have sold the most, they may still be strugglign with their business model, but they've won.  They've overtaken Microsoft for the time being and they made a profit after two "desperate" pricecuts.  And the headlines in the news lately have said Sony is just going to keep cutting costs relentlessly this year.  Shrunken lasers, 65nm RSX, 45nm Cells, smaller mb that innevitable comes with the previous two.  Looks like they'll be reaching $300 this year, and it might not even cut into their pocket books.

What "impossible" thing will Sony next for my amusement, I wonder?