They are nearly at the point of breaking even PER UNIT SOLD.  They still have an awfully long way to go before making back everything that the PS3 has cost them over the last couple of years. 

OT: I think it's more than likely and probably before the end of March.  The momentum is certainly with Microsoft and Nintendo at the moment and things are going to get worse for Sony before they get better.

How could they be nearly breaking even if they lost 400 million last quarter?  Things like PS2 hardware, PSP hardware, software for all systems, accessories for all systems, and PSN actually make money you know.  Like you said they have a hell of a long way to go before making a profit on the investment, that will never happen, it is an impossibility.

i edited my post!

I DO believe its market share will drop below 20%. And yes i do realize that they are about to break even on the costs of producing to the revenue of selling each console. Even if this is true Sony has stated it costed them about $875,000,000 USD to develop the ps3.

If they made an average of $100 on each PS3 over its lifespan (which is even probably less than they will end up making per console sold) they would need to sell 8.75 million units over its remaining lifespan to negate the costs of development and make a profit. Sony will most definitely make a profit off the PS3, it would be against business ethics to take on an investment with a negative return because you are not benefitting the shareholders of the company.

You'd think that way with the way Christmas sales have been hugely in favor of 360, but the truth is that that the worse has already ended for Sony, or at the very least is about to end. Now that the Christmas rush is drying up, PS3 and 360 worldwide sales are going to fall back to being within 50,000 every week. At that point, it's no longer so much about which console is cheaper so much as which console has the bigger new releases. In that sense, both the PS3 and 360 are about even in Q1. Furthermore, Sony pretty much just has to survive through the next two months with selling the PS3 at a loss and then March comes along with the 45nm cell chip revisions where the PS3 should break about even. Then Sony just has to stay within margin with 360 sales (all the meantime making profits off of PS3 sales) until Q4 when they issue a $100 price drop along with huge releases like God of War III in America, Gran Turismo 5 in Europe, and Final Fantasy XIII in Japan. Needless to say, PS3 sales would explode, possibly as much as 6 or 7 million in two months. Now Sony just needs to make it happen.

Of course it will dip under 20%. I wouldn't even be surprised if it approaches 15%, but chances are it will turn around a bit for Sony before that happens.

Um ... Sony has sold more than 8.75 million units already.  And regarding your closing remarks, businesses DO make mistakes, you know:  MS, RRoD, ring a bell?  Obviously Sony doesn't plan to lose money overall on the PS3, but that doesn't mean it won't happen.

Keep in mind though, that Sony's investment of $875 million wasn't just on the PS3. It was also on the PS4 that will likely use much of the same technology as the PS3 such as Blu-ray and the Cell processor, which by the time the PS4 launches will be dirt cheap and will have the entire game development industry already familiar with it.

Extremely high and low percentages are hard to do.  To reach 15%, if the PS3 were at 20 million, the others would have to be at 113 million total ... 30m, 170m.  Right now it's at 19.31 and 72.81.

yeah i know they have sold more than that already, but they aren't making a profit yet so those sales don't count. Once sales start contributing towards liabilities then you can count them for making profits.

I'm saying if they made 100 dollars per console as an average over the lifespan of the console they would only need to sell 8.75 million to break even on the development costs of the ps3. They will most definitely sell that much by the end of the consoles lifespan and will most likely make an average comprible to $100 per console when its all said and done, so to conclude, profitability is inevitable.

Sorry dude, i don't mean to pick but 875 million is the tip of the iceberg.  Sony have already sold twenty million consoles with anywhere from 50-300 dollars lost per console.  Even most conservative estimates put total losses for the PS3 at about 3 billion all things considered.  Plus there are going to be many more systems sold before they go from $50 lost per console to $100 profit per console.  Cost cutting is only achieved by continual refinement of the manufacturing process which can only be achieved by continuous manufacturing.