RE5 on PS3 has sold .3 million more copies than the 360 version. The $200 dollar 360 may be selling at a small loss but this loss may not be recouped becase casual gamers tend to by fewer games, i think this is becoming evident becuase of this games sales. As well Sony has recently anounced that the PS3 will not get a price cut. This is presumably becuase they need to get as much cash from this price point and this games sales will reinforce this idea becuase it shows that even with the smaller install base games can still sell well and make sony quite a bt of money on royalties, Its all making sense now...

RE5 on PS3 had an advantage because RE is a popular franchise in Japan.

That's pretty much all there is to it. Same thing happened with DMC4.

And almost no other game.

 I agree with you. I've been saying that was their strategy for a while now. Plus those that spend $400 on a console tend to have more money to spend on games compared to those that only want to spend $200 on a console. Though obviously it would be ideal to have as big a userbas as possible, but if that were the case they'd have to sacrifice lost revenue from potential $400 console buyers to get the $200 console buyers and right now it is not worth it to them. Son'y strategy is a long term price descrimination as they will only lower the price once they have exhausted the $400 price range console market. But to prevent from exhausting that market they have to keep adding value to the console by offering new features or keep releasing quality titles to get people to move their percieved value of the console up to $400. Also keeping the price higher ties into the whole positioning of the PS3 as the "best" console with the best graphics and games and features etc.

Don't forget the Resident Evil and Devil May Cry series made their debut on a Microsoft console with those titles.

I think that the 360 version will outsell the PS3 one eventually. Even people who are non RE fans may buy it because they see their friends playing.