In a recent news briefing, Sony Chief Financial Officer Nobuyuki Oneda revealed that Sony will be able to reach profitability next term:

"At present, the difference between sales and materials cost has been reduced to between 10 and 20%. Within the year, it could be in the single digits. We'll be able to reach profitability at some point in the next term."

Sony will without doubt welcome the profits from PS3. The game division one again bled cash this quarter, operating losses on a whole increased by ¥6 Billion and hit ¥41 Billion. 

Sony shipped 3.2 Million PS3's in the previous quarter, an increase of 800,000 units over last years figures, mainly due to the pricecut and new hardware.

Sony's game division also saw an overall 27% decline in sales to ¥197 billion. Sony blamed the appreciating Yen and a fall in PlayStation 2 hardware and software sales for this though.

So, can we expect a profitable PlayStation 3 sometime next year? It's looking that way.

Source - Andriasang