the "PS3 will lose money" is a pointless argument. ALL CONSOLES ARE LOSS LEADERS TO GAIN MARKETSHARE. Sony and Microsoft earn money from the licenscing fee on games (and in sony's case, Blu-ray videos).
From Forbes: "The Xbox game console is hot, but its division has lost $4 billion in four years and isn't yet in the black."
The PS3 is expected to sell at $50-100 below production cost because Sony has an interest in quickly creating a market for Blu-ray distributions of Hi-Def Films. The first HD-DVD and Blu-ray players are expected to cost $1000, and with the PS3 being less than half of that, and able to play all of my old games (with progressive output), thats my choice. Flame all you want.
http://theinquirer.net/?article=26497