No they make money off the consoles they sell in Europe

The Playstation devision is making profit

Also the plan for the PS3 was to have a slow start, they predicted pretty much exactly what they sold for there first year. It's going to be out for 10 years why rush everything at the beginning and then have nothing for the end?

It was all cleverly planned out so the PS3 will do really good in the end. The only thing they didn't predict was the recession that really screwed them over.

The PS division is not making a profit. They might be making gross profit, but that's a far cry from bottom line profit once you include labor, R&D, overhead, taxes and other expenses.

Sony sold quite below their expectations in their first year. They had to revise their estimates lower a couple times.

Of course, because PS3s sold in Europe take less to manufacture than PS3s sold anywhere else.

no, software would be unstoppable

Besides larger SW revenue and the ability to cut price later, being 1st would have triggered earlier economies of scale, so most probably initial losses would have been the same, but with a lot greater profit from SW once break even was achieved.
Not to mention that BD would have won the format war before and with less costs, as an overwhelming HW base would have reduced the need to moneyhat some studios.

Wow, that's a short-sighted way of looking at things.

Gamecube sold a fraction of what the PS2 did last generation, but the important thing was that Nintendo didn't suffer financially because of that; they stayed in profit.

I lol'd but no its cause they are sold for so much more, 300 euros (which is how much they go for in Europe) is $431.67

and 250 pounds is $400 so unless the retailers are taking almost $100 up profit of each console it goes to the company

Right. 300€(taxes included, as usual in EU)>$300+even the highest EU sales tax.

No. If PS3 would have sold better, it wouldn't be priced as is. Also the software sales would be higher with bigger variety (and number) of games and the production cost of the system would be lower.