Of course the race for 2nd is worth it....who wants to finish last!?

Realistically, the only position that is actually meaningful in the market is the market leader ... and even that is fairly meaningless. The important factors to these companies are the absolute performance of their console, the portion of the market they captured, and the relative performance compared to their previous console.

Happy, you think the PS3 will probably finish in 2nd by a 10 million difference, isn't it?

No, it's completely meaningless who comes in second. The only people who care about this are Internet fanboys. In order for second place to matter, there would have to be a huge dropoff between second and third place, enough so that the third place platform would no longer be receiving multiplatform third-party titles. But that will never happen this generation, because:

1) 360 and PS3 sell at virtually indistiguishable levels (+/- 10% of one another)
2) 360/PS3 must share their game libraries to recoup development cost of HD games.

As a result, the two platforms have something like 80-90% of the same games, sell at pretty much the same rate, and are bought by the same demographics. The whole "competition" is pointless. The winner derives absolutely no advantage whatsoever. The XBox "winning" over the Gamecube had no bearing at all on this generation's Wii/360 fracas. At this point, either company spending itself into the red to "win" second place is mind-bogglingly stupid.

I've said this many times before: the 360/PS3 "war" is the biggest farce in gaming history.

How were they practically breaking even in january when they posted a slight loss despite PS2, PSP and software sales all being profitable?

They were still losing quite a bit in Jan on PS3s.

Have Sony made an announcement that they are now selling every console for a small profit. No

If they were able to make an announcement to that effect they would have.

It would drive share price up improve their liquidity and mean that the shareholders would rest a little easier.

Their silence on the matter should speak volumes.

I believe they made a small profit last quarter. Obviously they a long way to go to break even, but i think once they can reach the Japanese audience, things will change.

MS mde them do another price cut I think they may be close but still losing a little money per console.  Thats why no more price drop from them in 2008

Again, how do they show that when every multiplat game pretty much looks the same on the PS3 and XBox 360. Both IGN and Gamespot have done comparision with multiplate games for the PS3 and 360 and at least 20-25% of the games looked better on the XBox 360, while the other game looked pretty much identical. Only games like Burnout Paradise and DMC4 were more favorable on the PS3. Even though Sony has boasted time and time again, that the PS3 power was 10x's greater then the XBox 360, by looking at the games, we all know that it's not. Not even close to be honest. The CELL is a powerful number crunching chip, but it really hasn't esculated any of the PS3 games above anything on the 360. MGS4 and Uncharted are the PS3 best looking games and they are comparible to Gears of War and Mass Effect.

Sony needs to releaes more quality games and eventually get the price of their system to $350. Microsoft has them beat in terms of price and number of quality games to play. The only thing Sony really has is Blu-Ray.

Sony taking 2nd place won't matter much if Microsoft releases a new game console before that happens. Supposely the Gamecube beat out the original XBox in sales (which I don't believe), but no one really cared as it happen while M$ was discontinuing the XBox and releasing the XBox 360. So if Sony doesn't catch the XBox 360 by the end of 2009 or middle of 2010, it's not going to matter that much. We know they aren't going to catch the Wii unless Nintendo stops selling the Wii and brings out a new console.