As always, it pays to look closely at PR statements. This case is no exception... the first time I read his statement, I missed the "gross profit" part. Well spotted TheBigFatJ!

So what he's telling us, is that if Sony didn't have to pay its employees their salaries, AND if they could evade taxes and other overhead such as interest payments and shipments, Sony's gaming business would be profitable.

Fair enough, but that does mean they still have a long way to go to profitability, since SCE employs around 5,000 people if I recall correctly.

correct me if im wrong but isn't this how you calculate Net Profit

(Main Revenue eg Sales) - (Cost of Goods Sold/Manufactured) = Gross Profit  + 'Other Revenues' eg rent - Expenses = Net Profit/Loss

So by factoring 'other Revenues', sony could still be profitable after expenses are covered..unlikely but possible