No, it's code for 'We shouldn't have used expensive, exotic parts, when normal cheaper parts can do just as good"

Sony sells less software then microsoft this gen. Also, they spend more on hardware than microsoft. If Sony is making money off videogames that cover the hardware expenses, Microsoft is laughing to the bank right about now.

 Yes that's why Microsoft lost money last quarter and Sony turned a profit in their gaming division............

Ah yes...that. This is correct and fine. How do you justify Sony making more money on games alone when they sell more systems than MS at a loss and less games than MS? Its not possible...

I'm jsut proving OP is wrong.

What the topic should say is ..."Sony making more money on PS2 and PSP sales than they lose with PS3"

 Fishy didnt you check the response to the exact same comment on the new article. Spin City population you. He obviously means that Nintendo makes money on the hardware alone in addition to their software whereas Sony needs to make ps3 money via software.

Sony also has a lot more first party development which they get a bigger cut from.

 How do you know Sony sells less software ?

One reason has to be marketing budget among others things...

You see far more commercials related to the 360 than to the PS3 in NA...

Those third-parties Microsoft paid for have a cost too and you have to wonder if despite the 1 billion $ set aside for RROD Microsoft still isn't incuring some additional costs for warranty issues...

Proportionnaly Sony has more first party titles out than Microsoft too and the profit on first party is huge compared to the one on third parties..( half of the 360 exclusives are third parties so MSFT doesn't make that much profit on those).

Its because sony is selling more first party games than MS.  If you look at the world weekly publisher totals, you all most always see SCE but never MS.

I disagree...everyone is talking about high development costs. I don't think developing these games makes sony much more money. Besides, what games have they published this year thus far? Nintendo is publishing mostly all of their hits...but both Sony and Microsoft are dependant on 3rd party publishers for revenue.