Its going to happen.
With Unreal, Uncharted, Rachet and Clank, Haze, and a few other AAA titles coming... it seems it all fits into a plan they have. Its obvious once 08' hits their will be a steady flow of games.. Maybe they are just trying to gain some ground again and then burst? I am not sure but seeing as this is Sony.. they will not make the most logical move.
People underestimate Sony as a whole company.. they will not need to sell an excess amount of software to regain the losses.. the Blu-Ray is part of their plan... the more Blu-Rays they sell the better it is for them.. it means more gaming software and movie sales go up.. In the end they will profit enormously if this plan of theirs is correctly executed.