Does Sony lose or make money? Plus are they making money overall on the PSP or did they lose money overall?

I don't think anyone can say for sure except Sony. The price drop didn't help profitability. In addition, Sony spends a lot of money on marketing. When is the last time you saw a DS commercial? I see PSP commercials all the time but not DS commercials.

The PSP has higher hardware costs, higher marketing costs and a poorer software attach ratio.

In terms of profitability, the there is no comparison. The DS wins in every category.

DS Commercials are on constantly in the UK, as are Wii commercials. I haven't seen mainstream game advertising to this extent in the UK since the PS1

Really? The problem with Sky+ HD is that I never watch Ads any more.... humm Did I say problem? :D

I think they make money now, but I can not tell you for sure.

i am pretty sure it is profitable for them or they wouldnt have dropped the price. The attatch rates are fine the problem is everyone is always comparing the psp to the ds.

 Sky HD? I've heard it's a bit of a rip? I only watch Freeview / Council telly so I wouldn't know.

guys your forgetting that the PSP is selling well But the DS Sales could be counted as super sales and i do think they make $ on each PSP Sold. So my guess is that Sony is makin a nice profit on the PSP and the PS2 to keep them afloat ATM

Last I heard they are still losing some money with each PSP Sold. It was under $100 per system but its still money lost.

My guess would be that they are either breaking even or making a small bit of change from the PSP. It's been the same price for 2 years, how could they absolutely not have made any hardware changes to bring down the price? Their are different revisions of motherboards on the PSP, so I'm guessing the manufacturing cost has been brought down.