Not much games on PSN?

lol

I know you dont own a ps3.

What are you basing that on?

They're getting what, $2 an episode? And $25 for an annual subscription. All Sony have to do is put a few videos, some information and a few beta's together to make a compelling episode. Fans of a particular game (Socom: Confrontation being a recent example) flock to the service when an exclusive beta is announced.

As for Home, it's undoubtedly going to have cost quite a large amount to create. Advertising will probably only help to offset some of the production costs, but then I think Sony are creating the service to entice new gamers to their platform, (which will lead to different sources of profit) but not necessarily as a money making project within itself.

Sony most likely subsidizes the Online service as a way to get more Playstation gamers online, in hopes that they purchase the more expensive Sony-driven software such as GT5P, Warhawk, Siren, and PS1 titles, whereas Microsofts' offerings are far smaller and cheaper (however has far more content).

I'd say that Sony most likely loses a little bit of money on the service (not a ton), and Microsoft makes quite a bit off of it. However, we don't know how much Microsoft actually makes off Gold - Many players use discounted retail membership cards that are lower than $40 USD, which makes me think that Microsoft does not sell the cards for an insane amount to retailers, but makes quite a bit off direct-credit purchases off of XBL itself for memberships.

If I were to estimate, I'd say Sony is losing around $50-100m a year, and Microsoft is making around $250m a year from XBL between downloads and gold passes. Expect it to jump when Netflix integrates their service with Microsofts'

I think he's comparing it to XBLA/DD and WiiWare/VC which are far larger than PSN at the moment.

Nah it's free, in fanboy $$$ that is.  The fact of the matter is did, look at any organization, and personal cost are usually at the top of the cost list...to support a 24-7 environment, like PSN is setting Home up to be...that's going to be a pretty penny...that had better have something on tap to make up the difference...second life has linden (sp) as a way, but seems that PSN will have alot of stuff for free...what a wonder world it will be.

50-100 million annually is a little bit of money?

 that is true, although i think they plan on bringing it to EU sometime?? but its pretty easy for someone in EU to make a NA account and get qore, i actually have a couple warhawk buddies who do this.

they will get tons of money when home it out.

while its a free service it will make tons of more from ads.

the same way this site, and google gets its money.

I think your assumptions are way off, Sony should be quite profitable on the PSN by now, there are tons of DLC and original content, and the video store is getting up to 2nd gear now. Another evidence is that we know that Sony loses money on PS3 HW but we also know that the PS3 business is now profitable, games, accessories and psn are offsetting the HW losses and bringing money to Sony, I would guess that PSN is about 50-100M profitable.

I think you're overestimating Netflix streaming service because it's garbage and most movies and TV shows available there suck (The Office is the only one I saw that was woth it). I was one of the people that were excited about that and really enjoyed the possibility until I saw that it's just some select (mostly old) movies that they have there.

PS1 titles are cheaper than most games on XBLA and are not expensive unless you consider 6 bucks expensive....PS1 titles are also missing a lot, Sony could be up there with XBLA and VC in terms of volume if they just released some damn PS1 titles, the quirky cheap games are already there and are coming often, there's also more expensive games as you mentioned, but the volume is lacking, luckily they make up for it in quality. (Wipeout HD for $20, yes!).

 According to NPD XBL point cards and gold membership cards took up 3 of the top 10 spots among the top-selling accessories. 

http://news.vgchartz.com/news.php?id=1967 read it here.

and I still do not think qore is a great money-maker. It is just offered in the US, there are 5.8 million PS3s sold, let's assume 3 million PS3s are online in the US (calculating with the same rate of the Xbox360) and let's assume every second american online PS3 using qore (which would be very very good), and let's assume all of the qore-users do have a full year subscription (which is very very good again) that would be 37,5 million USD. That is not that huge, isn't it? Okay it is something, but not ground-breaking. I really want to know how much MS and Sony are spending on their online services. But if sony is profitable with the PSN, MS must make lots of money.