They best not be paying 38 dollars for a 120GB drive or they're getting ripped off in their large quantities, lol

It's not real life time break even until they get back every $$$ they lost over the years of the PS3's life time (in the billions)

It will not happen in it's life time, too little too late

Loss leading with hardware has proven to be a weak business model for the long term

The numbers are probably pretty close. Lets not forget that its only an estimate and probably at worse only off by less then 10% give or take.
Stores like Best Buy and Wal Mart make razer thin margins on all consoles. In fact its less then 5% which by the time the store pays for the distribution through their own channels and then the employee's that stock and sell it they only break even on the system hardware. The store has the same incentive, sell lots of consoles and you will likely sell more games. The stores make approximately 20 % on all software, controllers, and accessories that are sold at MSRP (thats $12 per $60 game).

What's up with all the estimates on how much Sony is losing? I still consider myself new to this site, but I have been on other sites like IGN and I don't remember this much discussion about any other consoles cost to manufacture. I mean we already have the facts from Sony. They take about a 10% loss on every console sold, and that was around a month ago. I'm positive Sony, like any company, is always looking for ways to cut costs on manufactoring. I'm also positive they will reach their goal of selling PS3 at a profit this year. Heck, if they get it down far enough we might see a $25-$50 price cut close to the holidays.

As I mentioned other consoles earlier, how come no one speaks of MS? How the X-box brand, as a whole, has yet to become profitable and how many consoles at x profit it will take to get them there. Personally, I don't care about that, just glad that all companies (Sony very soon) are seeing profits.

I'd like to know where to get that 120 gb hard drive for 40 bucks.

Considering each retailer makes at least $30-$50 from the sale of one console, I think sony is losing at least $80-$100 in the US. (if Boxing and controllers are included).

In the UK and Europe, Sony might be close to breaking even as in Euro, the Console would cost 268 Euros to make but sells 250-300 Euros depending on the Region.

Try Newegg.com.  Actually they have a Hitachi 320GB HDD for $40. 

Edit: Actually if you're really interested, you can find a 500 GB for $100.

That's why i said "declining wii userbase" and not "declining wii sales."

Based on the software tie numbers... the Wii isn't the one who has a "declining userbase" problem.

(Not that anyone is, but it shows the error of the Isuppli report.)