That was an unconfirmed guesstimate from a third party hardware company (iSupply).  As we can see from Sony's most recent quarterely report, they were TOTALLY wrong.  As of three months ago, Sony was losing a SHITLOAD on each PS3. 

If MGS4 couldn't put the gaming division in the black this quarter thats about to end, Sony is in trouble.

I doubt you know anything about the inner workings of Sony.Seeing as their still trying to concetrate soley on their gaming division.Your use of the word trouble,is indeed troubling.

I don't know if Microsoft can afford this in late this quarter or early next quarter (by afford I mean avoid having another loss quarter), but they really need to do a $70 or $80 price cut in the USA this year.

Think about it. It has easily the best games library out, and Gears of War 2 could only sell to new customers IF there is a big difference in console price between its release and Gears 1's release. Sony couldn't run the risk of matching a cut like that, and that's if they could make a cut at all. At this stage, it doesn't look like Sony will have a SINGLE PS2 upgrader exclusive out for the holidays. If Microsoft sucked it up and did this, they could (combined with no doubt huge Wii sales) put the US market COMPLETELY beyond Sony's reach this generation.

They had a big cut early this year in Europe, but that continent will need a small price cut as well (which should be easier because of the relatively high value of the Euro) to keep the Xbox 360 broadly competitive across the US market. Titles like Fable 2 and Banjo Kazooie should really do well in EU if Microsoft pushes them.

For more information on why I'm right and your wrong, hit the link:

http://www.vgchartz.com/forum/post.php?id=886560

I thought Sony said last year around november or october they were making a profit with the PS3. There was an article saying they were back in black.

Let's just say that during the PS3 era, Sony's game division has already lost more money than they made during the whole PS2 era. That alone will tell you how likely it is for them to make their money back. Not even a PS2-like success would make the PS3 profitable at this point.

So Sony has had some losses w/ the PS3? Big deal, the addition of the Blu-ray drive has allowed Sony to get some fat coin from the Blu-ray related business. Bd is already selling at 10% of the physical media market in america so that means that for every 9 dvds sold, there is one Blu-ray movie sold. That is a pretty big thing if you ask me.

No, it wasn't just developing. It was selling too -- and from looking at their last quarter results, they're still looking a shit ton of money for every PS3 sold.

I've got a friend with all three consoles. He has 20+ 360 games, 10+ Wii games, and 0 PS3 games. Zero. He was hoping he'd like MGS 4, but after checking out reviews he came to the realization that it just wasn't his kind of game. That PS3 lost Sony a lot of money.

Bull fucking shit. Show me stats that show BD selling more than 2% of the total physical media for this year.  Dont' give me some top-20 list for some week or anything like that.  Show me it selling more than 2% and I'll be impressed.  But it still won't mean profitability or "fat coin" is coming to sony any time soon.

Source please? I have never seen this 10% figure before. I did see something like "5-10% out of the sales of the top-selling Blu-Ray movies", which is very different.

Blu-Ray revenues have to be split between the dozens of members of the Blu-Ray forums.

Also, Blu-Ray itself would have cost billions to develop, a cost that wouldn't be reflected in the game division losses.

Add to that the fact that the moment the Blu-Ray market gains any traction piracy will ramp up exponentially in a way DVD never faced early on, and the threat of downloads, and you have the very real possibility Blu-Ray succeeding wont have been worth the sacrifice of the gaming division for Sony.