I didn't doubt the software sales got better, just that they'd be enough to offset the loss. Remember that any game sale only goes to SCE from the licensing cut.

@LTNK

Yeah, I am going by attach rate, which does take into account ps3s which weren't bought to play games, but doesn't take into account that they sell no games for those systems.

As per how much they make per game,
http://www.forbes.com/2006/12/19/ps3-xbox360-costs-tech-cx_rr_game06_1219expensivegames.html

"Console Owner Fee: 11.5% (about $7)

This is why Sony, Microsoft and Nintendo are laboring so mightily to make their machines to success: Each gamemaker that wants to roll out a new title has to fork over a fee for each unit sold. This may vary per console maker--some publishers say creating games for the PlayStation 3 is more expensive because of fees Sony charges to use its Blu-Ray DVD standard. "But that number can get smaller depending on the publisher's status," says Peer Schneider, vice president of content publishing at IGN, News Corp.'s gaming portal. "The fee can be waived for exclusivity to a platform--that will buy you a kickback."

Publisher profit: 1.5% (about $1)

After all other parties--including the in-house or outsourced development teams--have been paid, the publisher collects about a buck toward the bottom line. As these pricey consoles become more mainstream, those dollars will add up."

So, for every 3rd party game they sell. They make at least 8 dollars. And for a controller, they probably make 15-20. First party games probably make more.

wrong

And of those dollars, the PS3 loss makeup is not the only thing it goes to.

What does it go into?

The entire funds for SCE, I would presume. R&D on a new system alone can take millions. Redesigning the PS3 itself didn't come free.

ok ill accept R&D as an answer.

Everything else has been pretty much accounted for in both console cost and game profits.

I too was surprised that the Slim would still sell for a loss (makes you wonder how much it still costed to make a phat), but the amount now must be minimal enough that first party software and third party licensing makes up for it pretty damn quickly. Don't you dare feel sorry for Sony, they're definitely not feeling sorry for themselves this week.

Oh wow, my world has been flipped upside down. I know see the light. Sony must be profitable because you said I was wrong (despite not a lick of evidence to support your claim). You have changed my life. Thank You!

Well I read about an increase in PS3 software sales should help. The PSP go will likely be a more profitable device too (though I would reckon a higher retailer margin) and that should help make back the money