The fact that the game division profited during a launch quarter is very impressive. Not even the PS2 managed to accomplish that. The PS4 is being sold at a loss and the PS3 is way down from last year. Vita of course isn't helping. The huge increase in PS+ subscriptions along with strong software sales have been very beneficial for the game division.

http://www.investopedia.com/terms/o/operatingincome.asp

The logic is flawed though because nobody just buys the console and nothing else.  Sony may take a small loss per console, but they should be making money per PS4 owner because on average each person is buying a couple games and an accessory with their console.  And then as each subsequent month passes by, any new games, accessories, PS+ subscriptions that those PS4 owners purchase, those will all be profit for Sony.  That's why the most important thing is to get the consoles in people's homes.  It's an investment for the next 7 years.  

You seem to suggest that your interpretation is the only possible one. It IS thanks to those record breaking sales that the game division made a profit, but indirectly. Sales of ps+ tripled after the ps4 launch. Had it sold less, there would be less ps+ subscriptions. The console also sells games, which are more expensive than ps3 games. And it seems that the ps4 camera is quite successful. Again, without the record breaking sales, who would have bought all these things that helped Sony make a profit? The profit is thanks to the ps4; not the hardware itself, but whatever extra it is that people buy for the ps4. The way he phrased it is absolutely fine. Had he said, "thanks to making x on each standalone console sold", you'd have a point. At the moment, you don't.

If you say to someone that "it's thanks to the ps+ subscriprions and software sales", one could assume you're referring to ps3/psvita related sales. The ps4 is what made the difference, hence why it gets the credit. 

I was talking soley about the {{{{CONSOLE DEVICE}}}} SOLD and {{{{IN SHORT TERM}}}}.

look at the revenue

They seem to have managed to cushion the blow with the PS+ subscriptions.

The hardware costs are an investment, the profits are trickling in the following months/years little by little (software and accessory sales).

The new PS+ subscriptions are exactly the opposite... they get the subscription fees for the whole year in advance (some pay even for several years in advance) but have to deliver the goods step by step over the year.

As always with Sony related news, people like to use all kinds of superlatives. It is making money, but not so freaking much as some people make you think.

Just to put the numbers in context:

PS3 / PS4 + PS Vita and PSP = 170 million USD profit.
Xbox 360 / Xbox One + Surface and Surface 2 = 470 million USD profit.

(first party software sales are nor.included for Microsofts numbers)

It is cool to see all 3 posting a profit. That has been a while since it happened last time.

what did you just do? huh?

Well one of the reports for the launch said Sony would profit if one game or controller was sold (don't remember if PS+ was necessary as well)... So they aren't losing too much per unit, and I don't see many buying it without any SW. So the prospects are good for the gen... MS haven't spoked about their margin have they? Because most of those break down put Sony and MS with about the same loss/margin around -30/+30 US$ per console... so I think both are good for launch profit.