Sony has lost over $3 billion on the PS3

Haven't you guys been listening over the last year? BluRay is where they will make any profit. They had to mark down the machine to get market penetration to win the HD format war.

Its more profitable for Sony to take $3 profit for every BluRay disc it sells than $100 for every PS3 it sells.

but there is speculation that Blu-Ray is on borrowed time as it is

depending on how true it is, it could still be a tough loss

Besides, if you want to factor Blu-Ray into the equation, then shouldn't the money invested in both the technology and securing studio exclusivity be factored into it as well?

I don't see how you can look at just development costs of the PS3 and use Blu-Ray as the redeeming feature, financially, when that particular technology cost quite a bit to create as well.

I think most articles I've read state that Sony will never make it's money back on the PS3 and this might adversely impact the next generation of gaming consoles.

I'll have to pull one of those articles in my trade magazine for more specifics - I can't recall them right now.